Loading...
HomeMy WebLinkAbout13 Budget Process Workshop Agenda Item # Staff Report To: Board of Directors From: Peter Holzmeister Date: June 29, 2005 Subject: Budget process workshop Why this matter is before the board: We are about to begin preparation of the budget for 2006. There have been comments or suggestions that some modification in the process could be helpful to the board of directors. This matter is now on the agenda as a workshop to begin that discussion of budget process. History: Our current budget process begins each year with the strategic plan meeting in August. That meeting has been tentatively scheduled for August 3rd of this year. Based on the plan that emerges from that meeting staff will begin budget preparation on September 1. Department heads are required to submit their budget recommendations to the general manager by October 1. The general manager, with significant help from admin services manager and assistant general manager, then assembles the budget, reviews it with department heads and submits a draft budget to the board on November 1. The board reviews the draft budget in November, holds hearings and adopts the budget in December, along with any rate ordinances and other related resolutions that are appropriate. The budget then takes affect on January 1. This has been our process. The budget consists of three documents: a very detailed document of worksheets, a capital improvements program and a summary budget. It is organized by department and distinguishes between electric and water utilities. It identifies revenues and expenses. New information: As a general introductory comment i would like to offer the following thoughts. The District performs two very distinct kinds of functions: (1) we serve water and electricity to twelve thousand customers each day, and (2) we respond to growth by supervising the construction of water and electric systems to new customers. The first of these functions, the delivery of water and electricity to twelve thousand customers is fairly easy to manage. It involves routine, predictable tasks. The costs follow a definite pattern that is fairly easy to plan for. This function is financed by monthly water and electric rates The other function, extending service to new developments, is more difficult to manage, is far less routine, is unpredictable, and involves large capital expenditures. This function is financed through fees paid by the developer. 4 } Y } We are using a single budget document to plan for two very distinct functions performed by our organization. The money is intermingled in the budget and monthly reports. This keeps us from clearly seeing the performance of the two functions. Another function that we are currently engaged in, one the does not usually occur, is the planning for broadband. This too is not similar to either of the other two functions. This function too is merged in the budget and reporting with the other two functions. This function too is non-routine and unpredictable. Our expenditures have been driven by the need to engage in an extensive business planning process, the need for LAFCo approval and by lawsuits. As a general reminder, the following topics have been suggested as areas that need discussion: • The board does not spend enough time with the budget to fully understand it. • The capital improvement budget format could be enhanced. • Adoption of the budget is not authority to proceed with implementation of all projects. Additional board action needs to occur. • There is not enough time spent during the year periodically reviewing budget status. Recommendation: This is a workshop so no formal action is asked of the board. r X Truckee Donner Public Utility District Board of Directors Joseph R.Aguera J.Ronald Hemig Business Office (530) 587-3896 FAX (530) 587-5056 Patricia S,Sutton Tim Taylor William L.Thomason General Manager Peter L.Hoarnelster June 27, 2005 Memo to: Board of Directors From: Peter Holzmeister Subject: Tree trimming dispute I have been engaged in a friendly dispute with Mrs. Margaret Halverson, a property owner in Tahoe Donner, over the cutting of a tree by our line crew. During the past winter members of our line crew noticed a tree on her property weighted down by snow leaning very close to our primary electric line. The crew members believed that if the tree leaned more it would make contact with our line and catch fire or cause an outage. So they stopped and began to cut the top six feet off the tree. The tree was quite tall and the removal of six feet would have left a large tree still standing. The owner of the house was home at the time. She was not contacted by the crew before they began to cut the top of the tree. She became angry, mostly because no one took the time to talk with her. She worried that after topping the tree the remaining tree would look ugly, so she asked to crew to take the entire tree out, which they did. The tree was not on our easement. It was leaning onto the easement and was almost touching the wire, so it needed to be cut. We have the right and the duty to maintain our easements in a safe manner, but we cannot trespass on private property. We can top or otherwise trim a tree to the extent it is encroaching onto the easement. This creates some situations where the crew is uncertain as to how to proceed. Mrs. Halverson pondered all that had happened and then called Jim Wilson to register her displeasure. She became convinced that we do not have a guideline for the electric crew to follow, and that a proper guideline should include contacting the property owner. Eventually she ended up talking with me. I told her that we have a procedure, that our procedure unfortunately does not include communicating with property owners, and that it really should include, at a minimum, make some reasonable effort to talk with the property owner. I also told her that trimming trees is very important. Trees in our wires cause fires. They also cause power outages. Tree branches in our wires are a danger to crew members who need to climb the pole. So I impressed on her our need to cut trees, even though we all love trees in Truckee. I told her that our procedure was communicated to the crew verbally, and it should be in writing. So I put the procedure in writing and shared a copy with her. A copy is attached for your review. I am not sure that Mrs. Halverson is satisfied at this point. We may hear from her in the future, so this memo is just to let you know what is happening in case it gets before the board. Pow Off'!ce Box 309 11570 Donner Pass Road Truckee, California 96160 Tree Trimming Operating Procedure This standard operating procedure shall be in effect immediately. Goal statement: The District constructs and maintains its overhead electric distribution system on easements throughout the Truckee community. It is important for the District to perform certain vegetation maintenance tasks in those easements to maintain access to poles, to help prevent outages and to reduce the risk of fires. It is also important for the District to recognize that the presence of trees and other vegetation enhance the overall atmosphere of the community, so control of vegetation should balance the need for safety with the need to preserve the mountain atmosphere. Trimming or removal of trees falls into three distinct categories: (1) trimming, (2) topping and (3) removal of the tree. Trespassing on private property prohibited: The District's activities related to easement maintenance shall be limited to the easement. Trespassing on private property is prohibited. Customer communication: The trimming, topping or removal of trees affects the appearance of private property. It is important that the District make reasonable efforts to communicate with property owners whose property can be affected by such activities. Trimming: Trimming is defined as the removal of branches from a tree to keep a safe distance between the tree and the electric distribution system and falls into two categories. (1) Hot trimming is removal of branches that are close to or touching primary wires. This is critical trimming because such branches pose a serious fire risk. (2) Routine clearance trimming is removal of branches to allow crews safe access to poles. Hot trimming will be performed without the need to contact the property owner. When it is determined that a tree needs routine clearance trimming the crew assigned that task will make an effort to contact the property owner by knocking on the door and communicating the need for the trimming. If the property owner is opposed to trimming the tree the crew shall refer the matter to the electric superintendent who shall make the final determination regarding the need for and extent of trimming. The property owner will be notified of the superintendent's decision. If the property owner cannot be contacted by the crew the superintendent shall be notified and he will attempt to reach to property owner by telephone. if he is unable to reach the property owner he shall make a determination as to the need for and extent of trimming. Trimming will be performed as carefully as possible such that the remaining tree retains an aesthetic shape, taking into consideration the need to protect the District's electric system and prevent fires. Topping and removal of trees: Topping is defined as removal of the top portion of a tree such that it will not grow any higher. Removal is defined as complete removal of a tree such that only a tree stump is left. ) When it is determined that a tree needs to be topped or removed the crew assigned that task will notify the superintendent who will make an effort to contact the property owner by telephone and communicate the need for the topping or removal. If the property owner is opposed to the topping or removal superintendent shall refer the matter to the electric system manager who shall make the final determination regarding the need for topping or trimming. The property owner will be notified of the electric system manager's decision. If the superintendent is unable to reach the property owner the electric system manager shall make a determination as to the need for the topping or removal. In cases where an emergency exists, such as during a storm, or where the tree poses an immediate and serious hazard in the judgment of the superintendent, notification of the property owner is not necessary. June 17, 2005 Peter L. tioizmeister 3