HomeMy WebLinkAbout1978-03-29 Min - Board /SOT
SPECIAL MEETING
MARCH 29, 1978
The Special Meeting of the Board of Directors of the Truckee
Donner Public Utility District was called to order by the President in the
District office at 7:37 P.M.
ROLL CALL: Directors Huber, Kuttel , and Maass were present; Director Sutton
was absent.
EMPLOYEES PRESENT: A. Milton Seymour and Susan Craig were present.
CONSULTANTS PRESENT: District Engineer Cook and District Counsel Grumer.
OTHERS PRESENT: Don Strand and L. Martin Duffy.
SPECIAL BUSINESS:
President Maass noted that the public hearing scheduled for tonight
will be held, but in addition, will be continued to the next regular meeting
to allow maximum public input, the reason being that there was a problem with
publication of the notice in the newspaper and it was the Board's desire not
to be accused of improperly noticing the public before passing on a rate in-
crease.
CONS
IDERATION OF PROPOSED ELECTRIC AND CASH FLOW BUDGET FOR 1978
REVIEW AND CONSIDERATION OF PROPOSED WATER RATE SCHEDULE FOR DISTRICT CUSTOMERS
The proposed Electric and Cash Flow Budget for 1978 was described
and explained in detail by Mr. Seymour. The draft budget included a rate in-
crease in the Water Department necessary to yield both a 6% and 10% margin.
A copy of the proposed budget has been made an attachment to these minutes.
Mr. Seymour stated that he would prepare a revised budget including
income for the Water Department based on the proposed new rates for presenta-
tion at the hearing. Director Huber suggested that a narrative regarding the
budget be composed for public review at the next meeting.
Mr. Seymour reviewed the history, objectives and revenue require-
ments of the Water Department to the Board; he explained the implementation
of pumping charges based on zones. M r. Seymour further explained rates to be
charged to commercial customers , monthly allowance, and charges for water used
in any month above the allowance.
Separately charging apartment dwellers for water was discussed; it
was decided that water bills would be presented to the owners of commercial
buildings rather than to the tenants being served water by the District. Ser-
vice to condominiums will be billed to the person residing therein.
PUBLIC HEARING
The President opened the Public Hearing at 9: 18 P.M. No members
of the audience wishing to be heard, President Maass stated that the hear-
ing would be continued to 7:30 P.M. at the next regular meeting.
A discussion ensued respecting corrections to the map designating
pumping zones . Further discussion was had regarding the new water rate and
budget. Mr. G rumer was requested to prepare a draft resolution adopting the
budget and ordinance establishing the new water rates. President Maass indi-
cated that the Public Hearing would be continued to a Special fleeting to be
held April loth as well as the next Regular Meeting.
Installation of commercial meters and effective date of the
ordinance establishing new water rates were discussed.
EXECUTIVE SESSION
The President adjourned the meeting into Executive Session at
9:40 P.M. to discuss managerial matters.
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ELECTRIC AND WATER CASH FLOW BUDGET - 1978
Water Electric Total
' i es 1 1/78 5i ,585 554,421 606 ,006
Current Assets Less Current Liab� l�t /
A. 30 g27 (1645310) (195s237)
• Assets : Inventory }
Less: Uns pendab 1 e 5 t
Van Wetter Note 1 , 00} _Q_ 1 ,50O}
Net Spendable Funds , l/l/78
199158 3905111 409 ,269
354,566 21355 9619 2•,710,185
B. Ordinary Revenues (389 .6820) (2,381 ,305} (2)771
Ordi nary Expenses --
• t 25,686) 60,940)
( 35254)
rojected Operating Margin
C. Extraordinary Income
2999000 -0- 299 ,000
xtraordi nary Expenses : 299 000 -0- 2995000
1 . FmH A 7 7 1 0 000 -0- 60
Legal2. and En ineering 6
Funds Needed to
meet Extraordinary Expenses
60,000) -0- 60 ,000}
D. Capital Improvementsq
Requested t
58,860} 1329725) 191 9585}
E. Total Spendable Funds (A)
199158 3909111 409 ,269
. Margins35 �54 � 25,686} � 649940}
• tin (8) }
Less: Loss �n Operating
Additional Funds needed to meet Extraord�nary
60 000 -o- � 60,00a}
Expenses (C)P p 132 191 ,585)
� }725Ca ital Im rovements Requested (D)
58,86Q}
N Funds needed/spendable 1 e after Payment of
Net (1349956) 231 ,?00 965744
Expenses
F. Water Department: Source of Funds
to cover Projected Operating Rate increase i 359254 -0- 359254
Margins - Minimum
Borrow from Electric Dept. to Cover Extra-
' Improvements 99,702 ( 99 ,702} -0-
. ordinary Expenses & Capital Imp o -
. -0- 131 ,998 131 9998
0
Net Funds Available �E less F}
G. Water Department:increase to yield a 6/ margin:
l } Rate
249882
$4149702 - 389 ,820
Plus amount needed to cover current 605136
' 3S 254
operating costs
d a 6/ mar
. / increase over current rates to yield Tn and cover projected operating g
expenses . . . . . . . . . . . . . . . . . . . 27.2%
P
2 increase to-yield a 10% margin:} Rate
43,313
$4339133 - 389 ,820
Plus amount needed to cover current 785567
3�,�54
operating costs
to
Q� margin. and cover projected ope rate r
° increase over current rates
Inc to yield d a 1enses 35
ex .2/
. . . . . . . . . . . . . . . . . . .
P
..rv•. - nr : ,t TYl'. :.,i.. `4'( ya. j'. M{- cF Y4 i_ :Z. ... +.'i' "- rTL-.x.;.
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ELECTRIC AND IVIATER CASH FLOW BUDGET 1978
Water Electric Fetal
A. Beginning Balance January 19 197
Cash in Bank -0- 1480,206 480,2O6
Investments in LA I F:
General Funds _0_ 359074 359074
S.P.P.C. Refund _. 166,304 {. 166,304
Notes Receivable 1 ,500 -0- 15500
Accounts Receivable 69,473 14 ,068 2159541
Materials and Supplies 309927 164,310 195,237
Prepaid Expenses:
b Insurance
11907 1 ,907 3,8l 4
Expenses relating ref ati n to FHA Loan 2 ,742 --0- 23,742 Interest Receivable 634 -0- 634
Total Current Assets 128,183 993,869 1 ,122 9052
Less: Current Li abi 1 i ti es
Accounts Payable 69,683 299 ,564 35 9,247
Refund Payable _0_ 122,404 122,404
e y
Accrued Payroll 4,562 119170 15,732
Accrued Payroll Faxes 1 ,213 2,969 4,182
cc y 3
Accrued Interest on Notes 1 9135 1695 21830
Accrued Taxes 5 l ,646 1 ,651
Total
Current Liabilities 769598 4395448 5169046
Net
Beginning Balance 51 ,585 554,421 606,006
B. Income
Sales :
Residential 149,600
Commercial 2,139 ,369 2,370,5715
Industrial 81 ,606
Resale
0"0_
Interde artmental 168 56,4 16
56,584
Standby Charges 469023 57,500 103 523
Transfer Fees .0 10 215 10,215
Connection a n Fees and Line Extensions 26,400 76 ,800 103,200
.
Tapping Fees
59000 -0�. 51000
`
Facility Fees 209500 -0--0- 20,500
Fire Standby Revenue 2,980 --0- 2,980
Fire Hydrant
Rents 1 ,239 --0- 1 ,239
Pole Contacts a ct� Rents nts -0--0- 5,006 5 006
,
Customer Contributions:ons:
2,500 1 ,1000 35500
M�• .�c. Joy Work
Service Repairs 2,000 _0_ 2,000
Commercial 299 000
Loans and Grants 299,000 _O�
Other Miscellaneous Income: �1.� 21 863
Interest on Restricted Funds ,550 5,313
1 S 000 3,0 00 45000
Surplus Sales , etc.
Income
.w0 . -0_ -0-
Miscellaneous
Tc►tal Income Available
6535566 22355,619 3,0099185
705,151 2 5910,040 31615,191
C. Total Bt.ginning Balance and Income
• r...,
him
•t
Flow Budget 1978
i c and Water cash i c Total
Electric dater Electr
page �
D• App rop ri at i or's
• 08 390 146,390
• Maintenance: 35,000 793
Operations ans and � 2�,723 3 '
p nt Salaries es l o,070
Department • 000 .'1 ,797 ,q40
p Employee ee Benef�t� �s,a0a � �739
Department Em � l82 197,109
p r 43,927 153, 600
Purchased pews 14,40a �� '
t Materials 71200 11000
Plan
Vehicle Operating Expense 1 1000 �0M
7,200
Water Quality ControT 3,60l 3,600
_ 11200
�
Backhoe Operating Expense I 200 �0� 21000
etr Maintenance 2,000 1 ,80a
T el e� y i 540 1 ,260
Telemetry Leased Lines 500 21500
• Maintenance 2�000 4,500
Radio 1 6QC 3,000
Equipment Rentals 10,9000
Instruments tru�nents 109000
�0�
small Tools and N�ateri a1 s
•al deter Replacement
Commerce
General and Administrative: � 8 11 ,977
amer Accounts Expense• 3,693 384 6,700
Cust 5u plies 50 41200
20a
Billing and Offs ce p 1 , 3,900
200 2,1700
postage 1 , 66 49523
Telephone • tenance and Lease
Office Equipment �ia�n
00 48,000
• 24,000 24'0 00
Outside ServiC. . _p� �0
i stri ct Engineer 85000 1910300
D 6 600 l Z,SQa
Other Engineering 400 5,1200
• Counsel 2,800 2, 000
District Legal 3,000 3
Other Legal Counsel .�0_ 99500
Consultant 3 6 ,3a0
Financial Consul '200 400 31000
Auditor
600
2,
Computer programme ng 650 1,,3t10
p 7 ,650 7
800 61000
4,�00 � ' Oa
ns uran ce 1 .680 2,4
� Directors Fees 72O '
Board of Directs 700 6,700
3o a 2,000 4'
l and Meetings 500 1 ,700
Trove � 200 1 , Q00
i l di ng Maintenance 55600 8
8u 2,400
on Expense l 900 2,700
Elect' .r l i cl e operating ng Expense800 0 6Q0
Admi ni s trat� �e �e� oo 40,600 6
• a ��'� 4J'4r 1 3`� 3080
Utilities • Salaries :es : anage gent 43 000 96,080
•strati ve ,gal ar � 368 l 6,96��
Adr i n* Hou rl y 6,600 11 057
• s: Management 27 ,a 27 39'
Em loyee Benefit 12,030 61 ,000
Administrative p Hourly 45,000
• nteres t l 6,00t� 9 ,965
. SPpC Prince � 283 89682Qo
Serve ice FmHA 3 REA' Repayment 1
�, _0� 1 ,l
Debt Line Truck 1 ,100
er Loan Repayment, _ _ 5,OOo
Comp u t5 000 a 0 500
Sewer Assessments 2
Se Meters 20 500 _0�
d far Future ' Fees) 313 2l ,863
Reserve d Funds (Facill ty 15,550
6 '
Transfer to Restri cte ted Funds
raps f erred to Res try c 2,771 ,125
Interest T 20 2=381 ,305
389 ,8
Total Appropriations
. e & income 315,331 �28,
735 844,066
E.
Net Beg6 nn*ng Balance
Less Appropri ati ons
EWctri c and Water Cash Flow Budget 1978
,page 3 Water Electric Total
F. Other Appropriations
Extra Ordi•nary Legal and Engineering 60sOOO -0- 60sOOO
G. Capital Appropriations
FmHA 77-1 275s258 2759258
Loop Hospi tal Water Line 6!1000 �0- 61000
Loop Palisades Drive 10,)000 -0- 10,1000
Cable Support River Crossing .11000 -0- 19000
Pannonia Road Line Relocation 0- 6,sOOO 6sOOO
Line Relocations Donner Lake -0- 10 5000 109000
Capaci for Program -0- 81o515 8,515
Prosser Lakeview Estates Line Extension -0- 30X0 30sOOO
Line Rearrangements and Balancing �0- 105000 10,1000
Building Painting 1 �500 35500 5s00O
Parking Lot Resurfacing 39600 8,400 129000
Plant Office 1 �800 41800 6 �600
Vehicles • 5,950 18 1�050 34,000
15
Telemetry Additions 6 �000 -0- 6 sOOO
Maior Roof Repair 1 �200 25800 4sOOO
3s210 6 $840 105050
New Radios quipment 4�500 10,600 15,100
New Off 1 ce r I I
600 11400 2,000
Inflammable Storage Building 51no 3sOOO
Fencing and outside Faci•lities 900 4 2 0- 2s00O
Relol,,,-..ate Pressure Reducing Valve at Southside 21000 W..
Office Flooring 600 11400 2t0O0
8�320 8,320
Pole Replacements 4�
Total Capital Appropriations 334018 132,725 466 $843
H. Total Other and Capita l Approp ri ati ons g 4,1 l 8 132s725 526,843
Previously Approved
Partially Approved
le
WATER RATE PROPOSAL
HISTORY
For at least the past ten years, the Water Department has operated
• income. Survival has only been possible through subsidization
with th inadequate n
from the Electric Department.
In 1976, the deficit was $34,000. In 1977, the deficit was about the
same. Budget predictions forecast a similar deficit in 1978 unless there is an
increase in rates.
OBJECTIVES
The objectives of this study were to:
97
1 . Estimate the 1978 revenue requirements from the budget information.
q
2. Distribute revenue requirements to basic service costs and pumping
costs.
3
To distribute pumping costs to various pumping zones.
4. Provide a margin n of income over expenses to provide for contingencies
�
and continued improvement of service.
REVENUE REQUIREMENTS
indicates t
The budget � that expenses will exceed revenues by $35,354 unless
•
an increase in rates is enacted into law. (See page 1 of the budget)
a 1 4 313 is needed to provide a 10% margin of income over
Addy tional y, $ 3, a 873.
expenses. The
total revenue needed from usage charges i s $3 9,
• is budgeted for the cost of pumping and the balance
Of this s amount $58,000 g
s o
e• perating, maintenance and overhead expense ($2512873) .
We propose to obtain the $5 8,000 by imposing a pumping charge on all
customers based upon which
tank the are receiving their water from and the
actual or estimated usage in gallons/ year.
as allocated 6
The $251 ,873 for O & M expenses w 4% to domestic users and
and usa e divisions. Thus,
3
6% to commercial users based on past revenue divisions g 64% of $251 ,873 �s $161 , 19 resi-
dential customers.
The result is a fixed monthly rate of $7.90 per residential customer.
4 must come from our
The remaining commercial customers. Current n�ng $9O, 7However 56 of our r commercial i a 1
com
mercial metered rates yield about $819000/year.
_1_
customers a re not metered;d' another 50 have inaccessible or broken meters. Our
customer
goal is to bring all commercialinstallations up to District standards,
6 004/
which
should increase our revenues by at least $ Year.
We also propose to inc
rease the cost of excess gallonage by 10 to 30%.
These two act Y ions should field the additional $10,000 needed from com-
mercial water sales.
PUMPING ZONES
To properly allocate pumping costs, we have divided the District into
p 9
served b a tank or group of tanks at the same ele-
vation.zones. Each zone �s Y depends upon how many feet
vation. The cost of pumping water to any customer p p
the water must be lifted to reach the tank that serves that particular customer.
The specific zones are:
ZONE AREA/TANK LIFT
1 De erf i e 1 dl Donner Trails, Downtown, Olympic Heights, 220'
Gateway
Valley,2 Sierra Meadows, Marti s V y, Armstrong 400'
500'
3 Soma Sierra
600'
4 Ponderosa Palisades
5 Prosser Heights, Prosser
Lakeview Ponderosa Palisades West 650'
6 Innsbrueck, Falcon Point, Sitz mark 700'
7 Herringbone, Round Hill , Stockholm 924'
.' 10 5 0'
8 Pinnocle Loop
g Donner V i ew - Ski Lodge
1100`
1410'
10 Ski Run
1700'
11 Glacier View
The cost of pumping
1 ,000 gallons of water to any given height is:
(KWHRS) (Cost/KWHR) _ (Lift in feet) 00315) (cost per KWHR)
pumping efficiency
ficienc is estimated to be 40%. This is the pro-
The system pumping of Y
duct of
meter efficiency 80-94% x pump efficiency 50-60%0 x transmission efficiency
s efficiency would be .5x.8x.7--
2$o, and the maximum
]Q-95i using the minimum figure
would be .6x.9x•95=52%.
The mean is 40%.
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Electricity costs are approximately 4.75�/KWHR.
Based on usage of water in areas where there are no known leaks and where
good figures are available, we estimate the average residential customer uses 8,750
gallons per month.
These figures
were used to compile the following table of pumping costs:
ZONE LIFT COST 1000g als RESIDENTIAL RESIDENTIAL
�
COST/MO COST/YR _
1 220 $0.0$2
$0.72 $ 8.61
2 400 0. 150 1 .31 15•72
3 500 0. 187
1 .64 19.68
4 600'
.224 1 •96 23.52
5 6503
.24 2. 13 25.55
6 700, .262 2.29 27.48
7 9201 .344 3.01 36. 12
g 1050 .393
3.44 41 .28
9 11001 .411 3.60 43.20
4.61 55.32
10 1410 0527
it 1700 .636
5. 56 66.72
For residential sales t pumping these i ng charges will yield $34,747.
P
Commercial
users are estimated to use 146,000,000 gallons per year.
. i n zone 1 . The pumping revenue is estimated
Of this amount, 110,00o,000 is used allons} in zone 7
to be $9,020•
The balance of the commercial use (36,0009000 g
and the pumping revenue will be $12,384.
pumping Thus, the um
total ing revenue will be $55,878-
Replacing the Deerfield line will save at least $3,000 in pumping costs
during 19789 and about $69000 in 1979•
By placing Wells A & B into automatic service, pumping costs for zones
iall A capital expenditure of about $7:000
g, 10, and 11 can be reduced substantially.i needed to construct pump houses and install
controls. This expenditure
-$10,000 s
is not included in the 1978 budget.
Based on the pumping charges shown above, the proposed monthly rates for
residential service are as follows:
-3-
Zone 1 $ 8.62
Zone 2 9.21
Zone 3 9. 54
Zone 4 9.86
Zone 5 10.03
Zone 6 10. 19
1
Zone 7 10.94 .
Zone 8 11 .3
Zone 9 11 .50
Zone 10 12.51
Zone 11
13.46
Commercial rates will be:
RATE GALS/MONTH
SIZE SERVICE ALLOWANCE
3/411 $ 7.00 6,000
111 9.00 11 ,000
1 1/411
11 . 50 17,000
1 i/2 11 14. 10 24,000
21
1 20.75 43,000
3 it 37.20 96,OOo
411 54.90 1719000
00 gallons will be added for all water used.
The Zone charge per 1 ,0 g
Water used in any
month above the allowance will be charged as
follows:
0 to
16,000 gallons 5U/thousand
16,000 - 5 6 000 " 40�/thousand
56,00
0 - 96 000 " 3N/thousand
969000 - up " 25�/thousand
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