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HomeMy WebLinkAbout10 Mission, Goals, Budget Agenda Item # 10 TRUCKEE IIr A i Pi-.4)hc Utility District Workshop To: Board of Directors From: John Ulrich Date: October 12, 2007 Subject: Discussion of the Mission/Goals/Objectives and updated Budget calendar 1. WHY THIS MATTER IS BEFORE THE BOARD This item will connect the mission, objectives, and goals with the proposed 2008 budget. Confirmation and direction from the Board is necessary before the final budget recommendations from staff can be completed. This type of workshop will start this evening and go over the course of the next two board meetings. The Mission of Truckee Donner Public Utility District is to provide adequate, reliable and high quality water and electrical power services, and to manage District resources in an open, responsible, environmentally sound manner at the lowest practical cost. In pursuing this Mission, the District will actively seek renewable energy sources as set forth in its Renewable Portfolio Standard Objectives: 1. Provide an adequate, reliable and high quality water supply and distribution system to meet current and future needs. 2. Provide an adequate, reliable and high quality electric supply and distribution system to meet current and future needs. 3. Manage the District in an open manner. 4. Manage the District in a responsible manner. 5. Manage the District in an environmentally sound manner. 6. Manage the District in an effective, efficient and fiscally responsible manner. Goals: 1. Provide an adequate, reliable and high quality water supply and distribution system to meet current and future needs. 1.1 Maintain and implement a current Urban Water Management Plan which includes current and future projections of water quality, demand and supply. 1.2 Maintain and implement a current Water Master Plan, including the required facilities to meet current and future demand and supply. 1.3 Secure the necessary water rights and other legally required documentation. 1.4 Provide effective and efficient maintenance and replacement programs. 1.5 Provide an effective and efficient operations program. 2. Provide an adequate, reliable and high quality electric supply and distribution system to meet current and future needs. 2.1 Maintain and implement a long-term energy and load forecast. 2.2 Maintain and implement an Electric System Master Plan, including the required facilities to meet the current and future demand and reliable supply. 2.3 Provide effective and efficient maintenance and replacement programs. 2.4 Provide an effective, efficient and safe operations program. 2.5 Procure and contract for low cost electric power supplies to reliably meet current and future loads. 3. Manage the District in an open manner. 3.1 Conduct the District's business in a legal, open, transparent manner. 3.2 Implement a proactive public outreach program. 3.3 Promote communication and cooperation with other public and private agencies. 4. Manage the District in a responsible manner. 4.1 District will conduct its business in a lawful and ethical way. 4.2 District will develop and implement high standards of customer service. 4.3 District will develop and implement high operational standards, procedures and codes of conduct. 5. Manage the District in an environmentally sound manner. 5.1 District will seek power supply from an energy resource mix that satisfies its Renewable Portfolio Standard 5.2 District will strengthen its programs of water and electric power conservation. 5.3 District will support a program of distributed generation within its Service Area 5.4 District will maintain a program of energy and water use efficiency. 5.5 District will conduct its business in an environmentally lawful manner. 5.6 District will seek to minimize any negative impact of its operations on the environment. 6. Manage the District in an effective, efficient and fiscally responsible manner. 6.1 District will utilize modern, cost effective work methods and equipment. 6.2 District will employ a qualified and productive workforce. 6.3 District will provide work conditions and procedures that encourage employee growth, productivity and retention. 6.4 District will conduct an active cost control program. 6.5 Review and implement a Financial Goals policy to achieve a stable financial condition. 6.6 Develop appropriate financial procedures to assure responsible financial management. TRUCKEE DONNER PUBLIC UTILITY DISTRICT-2008 BUDGET CALENDAR - Update as of 10/9/07, 11 AM Due Date Action 10/17/2007 Wednesday 2008 Draft Budget discussed with departmental presentations Discuission: revenues & overheads, reserve funds & rate stabilization, rate change(s) Board discusses and debates of 2008 draft budget Board gives direction to staff to finalize the 2008 budget 11/7/2007 Wednesday Final 2008 budget goes to Board along with Finance Master Plan Finance Master Plan discussed Public hearing on rate change(s) Public hearing on budget Board discusses budget 11/21/2007 Wednesday Public hearing on budget or on 11/28/07 Public hearing on rate change(s) Target for Board approval of Budget and rate change(s) Agenda Item # 33 b'k .pt Jill A� I onner Public Utility Dist". "' '., .......... ►apartments 1 and 2 { rrc i rectors and General Man The Mission of the Truckee Donner Public Utility District is to -71 �` g ade uate ,tenable. and hi . .h, quality water and electrical power and in an open, r environrnfy -, her at the lowest practical cost this Mssion, yI,1P fictively seek renewable en set forth in its R lio Standard. obJeCtlVe - District in an effective, eff' responsibly M, Goal 3..E the District's business in a Goat , ment a proactive public outreac' smote communication and cooperi agencies } rict will conduit its business in a la `ical' wa� . tstrict will develop and implement high operational s, procedures and codes of conduct. Departments 1 and 2 2008 Challenges Cost Center 1 and 2 consists of Directors, General Manager and Executive SecretarY ➢ Broadband business , r ,xa ➢ legislRe ulations andati g ➢ Organization structure andp ➢ Renewable resources ..................... -------------. .................. Department 1 , Board of Directors �eU, ditures are a combination of Water and Electric ➢ Cost Center 1 , 2007 Budget $ 153 , 385 );;;- Cost Center 1 2008, Budget $ 1618 a );;;- Increase is due toprimarily expense of $ 15 , 000 ......... . . .. . .. ... . ----------- .......... ......... ..... .............. .........------ 3� z ' r r f .x Department 2, General Manager ............. turesr1a are a combination of Water and Electric )'w'- Cost Center 2 , 2007 Budget $ 9757245 ➢ Cost Center 2 2008 Budget 753 , 369 ➢ Reduction : Legalteleco $ 1751000 � ➢ lncrease : MembershipCa .for Utilities Assoc. due to legislation "a � .�. r glation,':,coo r e�. . ray� wx . Departments 1 and 2 u al Projects ➢ $400 , 000 : Corporation Yard - will bring the project to grading , design and permitting ( paid by ,salle of land )'w" $3 , 050 : Board Micro h ➢ $6 , 000 : IT display for eac ➢ $21 , 000 : Streaming video cif B,1 meetings on the internet ,". ..-11"1-10 � t Agenda Item # 1 �„ V onner Public Utility D Department 3 MW X istra i t ve Services E e The Mission of the Truckee Donner Public Utility District is to provide reliable and high quality .water and electricalpower services, and to mars � resourcesan, ra; pcnsible, environmentally sound manner a pradida omission, the District will actively se ever sor a rtl ll' �� ewable Portfolio Standard gy Ob1ective man in an effective, efficient art manner. Goal 6. 1 - Dstri Bern, cost effective work m ; Goal 6.2 - ist���� . a qualified and productive Goal 6. �� provide work conditions an employs ductivity and retention. �.. mill conduct an active cost control pry and implement a Financial Goals : p appropriate financial procedures to assure responsible fi mend 3 -- AdministrativeServices 2008 Priorities ➢ Respond to customer questions and requests for information and service in a timely manner ➢ Assist electric and water operations in commu customers during planned and un ➢ Accurately read customer meters each m ➢ Produce accurate customer bills in a timely mangy c t n .a ✓ a a - RZa w:, ice. �^x z ', by t e}�z-" tl- a� ;.,t z � � ' �,uc = s -"`s', �, �. - r A �4drinistrative Services r 2008 Priorities ➢ Process all accounting transactions accurately in a timely manner according to generally accepted accounting principles - Process all payroll transactions c l ac approved labor and benefit schedule ➢ Produce accurate and timely billings to deve for construction and other services rendered ➢ Work to develop policies and procedure t prot BUY inx Wit - Ad1M�nisrative Services 2008 Priorities ➢ Upgrade computers, servers and other equipment and software to allow the staff to work in a more productive and efficient manner ➢ Pursue employee development to better equip employees to perform their duties in an efficient, knowledgeable and skilled.,,, , manner ➢ To set individual employee goals and performance to achieve District goals an development ➢ Provide accurate and timely reports to the Board staff members to meet their information needs pM z ..r , r:}..w .s r.x• z':ze*" c e s Y r ._ .fly N,M ' ra- . E .<>,,,.,. ., R , {mom y , Aurninisfrat ve services 2008 Priorities -1............... ➢ Propose updated customer policies, misc service charges and bill print formatting to respond to changes in customer information needs, legal requirements and technological changes ➢ Continue to document operating procedures to enhance cr training and meet new audit requirements ➢ Continue to assist the electric departm inspection requirements to visit and inspe commercial service within a three year perio ➢ Work with all departments to develop, a disaster better protect District customers in the eta was £ r z v ; f rar er - A ministriftive Services $3,000,000 $2,500,000 LA $2,000,000 0 0 $1 ,500,000 m $1 ,000,000 $500,000 $0 2007 YTD 9/07 Projected 2007 2008 ■Administrative Services - $2,502,473 $1 ,785,777 $2,420,720 $2,716,564 Operations x In f r �4iristratve Services IF erating Budget Increases 2007 to 2008 �y ➢Labor & Benefit Increase - Board approved Union Contract Management/Exempt salary sca% ➢Finance and Accounting Manager for all of 2 ➢Creation of Customer Services Manager position -- improvement and succession planning � �" � . ------------ :ems y: a a :* . ME?' 5 w , b'a fr. r yr c r ..lif went 3 -- Administrative Services � h ital a Improvement Progra m p 2008 - 2012 200s ➢Miscellaneous office equipment- upgrade computer systems $ 95,000 ➢New meter reader pickup truck- current SUV to pool vehicle 23,000 ➢Upgrade Meter Reading system- handheld reading/meter programming devices ➢Upgrade Archiving System p9 9 9 ➢Upgrade IVUE Billing and Accounting Server ,. Total ` ➢2009 Miscellaneous office equipment- upgrade office & comp ➢2010 Miscellaneous office equipment- upgrade office and computer ➢2011 Miscellaneous office equipment- upgrade office and computer e, Ift z t . Agenda Item # I ,Fm I1I i nner Public Utility Di Department 5 � General Services The Mission of the Truckee Donner Public Utility District is to provide adequate, ............. retabl and quality water and electrical power services, and to manage District .. . . 0 3 pets rsle, environmentally sound manner at the lower ` Za Cost. �� ission, the District will actively seek renew F . energy souses as ot � enewable Portfolio Standard bt4id;@+�E;i'YOik � x ate, reliable and high quality water supply an system to mt 're needs Goad L e and efficient maintenance and replacemen Jam, Goat 1'.5 � ve and efficient operations program 8 ode an adequate, reliable and high quality elect Ott dent and future needs rrouide effective and efficient maintenance and replac Provide an effective, efficient and safe operations programs Manage the District in an effective, efficient and fiscally �= District will utilize modern, cost effective work methods and e , —District will conduct and active cost control program ���y z 5 - General Services 2008 Priorities ➢Maintain Distrfl t ➢Maintain District Eq ➢Purchase materials and supplies in a cos ➢House materials and supplies in a sec:u );;;-Maintain a safe work envy 01nr � 3.1 ,`'�-fir < Ott ent 5 - General Services Quantifiable Changes; Operations 2007 to 2008 ➢Maintain a safe word ➢Transfer of labor from Depa ➢Pursue 180 Connect Broadband o� ➢Transfer of labor from Department 2 12 mgN 3,y �'#4n �r-t- e", ''' f ?.. # end 4 - Conservation General Services 2007 to 2008 $6007 000 ___-_---_ i i t a $5001000 $400,000 $3007000 1 . a $200,000 i { S $1 00,000 - $o e ent 4 Conservation dget IncreasesDecreases / 2007 to 2008 ➢Labor Increases ➢Board approved Union" , ➢Labor transfer from Departure" , ➢Labor Decrease ➢Labor transfer to Department 4 ME,11, t r .. ent 4 Conservation ital Improvement Program 2008 - 2010 ➢2008 x� ➢ADA Facility Upgrade $12,494 = ➢Security Entry System $ 7,500 );; Patch and Paint Donner Pass Road Facility $12,000 ➢2009 ➢Roof Repair $60,000 ➢2010 I Pi Pais R®a b l ty 77 . � i. i ilrl�rf x ir�il, P r ii�r nner Public Utility Dig Department 4 .............. f. Conservation RSA The_Mission of the Truckee Donner Public Utility District is to rovde a&quate reliable and high quality water and electrical serulcesy rind manage District resources in an op . - � rsns � nn` ntlysound manner at the lowest pr �+ cot. omission the District will act iv renewa, e as set forth in its Renewabl Standard t ' age the District in an environmentally s iMhSN. p ict will maintain a program of energy and�r district will conduct its business in an environ r, 4 - Conservation 2008 .Priorities ➢Legislation and Re } ➢Public Benefit Prog ➢Water Conservation ➢California Solar Initiative ➢Energy Efficieny r � � Rii r x E et 4 Conservation 3 3 iflable - Changes Operations 2007 to 2008 ➢District Adopted Renewable Portfolio Standard -- ° ➢Increased purchase of"' ➢District Adopted Energy Efficiency ➢New Energy Efficiency Progra ➢District Adopted "Enhanced Conservation Pr ➢Increase in Rebate expenditures ➢Development of District Solar Rebate Pro r � 9 _ N �Ufimd rogr L n, L Aiid-`W W- W&S,-, � � � toe rti? k_ ent 4 - Conservation Conservation 2007 to 2008 $7001000 $6001000 -- --- --- - $5007000 - ----- Z $4007000 m $3007000 $2001000 $1001000 - -- $0 Public q Ca. Solar Energy � � 9Y Benefits Initiative Efficiencye 2( 07 $10 3 tz 061, WE- r r . x ent 4 - Conservation Budget Increases 2007 to 2008 ➢Public Benefits ➢Enhanced Conservation 1' p� 1 );,Renewable Energy Purch ➢Wire to Water Program $1 ➢California Solar Initiative )'--New Program $241,075 (labor transferred from Dep ➢AB 2021 Energy Efficiency Program ➢New Program. $141,000 ➢� �� � � eaaure� t v� o �� ' 7�, 0 , l Y ent 4 - Conservation ,k � Budget In rc eases 2007 to 2008 ➢Education Outreach and Key Accounts I. .. ➢Increase inactivity $49,500 (labor transfer,{ :Dx ..a )io-Increased State Legislation and Rej ➢Increased labor $48,000 (labor transferred *' a Agenda Item # # �l I it I ill'I IIII 9 nner Public Utility Di: ---------- D ep artment 6 �P 5 n Electric Operations R� ............ The Mission, o the Truckee Donner Public Utility District is to provide adequate, reliab 3 qualm wwr an, electrical,power services and to manage District resources ,u e � onnexlly sound manner at the lowest practical cost. In }' rx ���hY�m'IIII h�I MW� eel wd ett � eek renewable ever sources as set forth r Port '4li€ ta�dOrd �iw I��i�lllll � nii IIII i I * " " �xa a�a a zu � i���19� illll ,IIII II Obi ective M� le and high quality electric supply a ` meet current a ; Goal 2.3 - hd efficient maintenance and replace GOaI " tiwe, efficient and safe operations pro Objective { an effective, efficient and fiscally r Goal r utilize modern, cost effective work meth + oat will employ a qualified and produc '+fit will provide work conditions and procedures and retention. ct will conduct an active cost control program. �a � ~ ew and implement a Financial Goals policy to achieve a`` ncialconditio'� �w velop appropriate financial procedures to assure responsible financial management'. 6 — Electric Operations r 2008 Priorities ➢Maintain Distrc ➢Maintain District E q ➢Purchase materials and suP ii effective rnaer 1 42 'j ........... 3 xr g, X ... _ 4,�.'K�' fr„,�' .T5 r `��.:%:§ai +,E'4�"r�• Ir W", �� !aas.rtz.s s§a�..�u:. � ..s � '?� s• sra tir��, _ t': - x � a 4, eat d Electric Operations rt dget Increases / Decreases 2007 to 2008 ➢Labor Increase 0 r, ➢Board approved Union ri s. ➢Electric Operations 2007 Budget ➢Electric Operations 2008 Budget $ , ➢Budget $ Change 2007 to 2008 $ v );;;-Budget % Change ,2007 to,2008 � a«p .'"ur:. ` T i ;x�y«a.k�s' P ' �` alt uw� �•�%w f�.. a -rM ,r t N Department 6 Electric Operations 2008 Highlights ➢ Continue ROW Tree ,C," I e rin Continue ROW Pole Clen ➢ Similar Training Budget as 2 );;;,- Purchase materials and _ supplies 17, 2007 {' ,,.l2lN iS •i'�'fv� YF§3 "� .�;?qm- { � 4 g .� 4c° 07 "M r a k Agenda Item # 5 nner Public Utility Di - Department 7 MMMMM eater Operations The Mission of the Truckee Donner Public Utility District is to provide adequate + 1, and high quality water and electrical power services, and to mana 111 resoutee to ,an open, responsible, environmentally sound manner at t o Ob.• leCtVe "Noylde un�, reliable and high quality water suppl ' system to . ire needs Goad 1 . lr � �adefficient maintenance and repl Goal 15 dive, efficient and safe operations. Ob,j ectve ct in an effective, efficient and fis Y x Goal, � �� utilize modern, cost effective wor , Gat . f�will employ a qualified and product' Gt .� iet will provide work conditions and pro � growth, productivity and retention. ict will conduct an active cost control progr " iew and implement a Financial Goals policy to tablefinan on. .v evelop appropriate financial procedures to assure responsible financial ° ment. 7 — Water Operations 2008 Priorities x� )��Maintain Distrlc � ➢Maintain District E q10; ➢Purchase materials and sup.� effective manner, . .. ......... i ---------------- � � �+�0 x �„ 5 ent 7 -- Water Operations � dg et Increases Decreases/ 2007 to 2008 ➢Labor Increase Mll ➢Board approved Union );;;-Water Operations 2007 Budget ➢Water Operations 2008 Budget $ , ➢Budget $ Change 2007 to 2008 $ ➢Budget % Change 2007 to 2008 � ° i i Department 7 — Water Operations 2008 Highlights ➢ Continue Pipeline Repacement sa F ➢ Continue Installation o f � ➢ Conduct Water Meter Study ➢ Continue Operations & Maintena similar to 2007 e-- t: , VVV } 7 I iy'y��Ip qyyq P I h nner Public Utility DiS4111 Department 9 ' . Power Supply & GIS ........... The Mission,ofthe Truckee Donner Public Utility District is to provide adequate ` , and .� lak: quality water and electrical power services, and to manage � � resoqX n open, responsible, environmentally sound manner .. Y dYlrviIS I i' ! a51 U,,.£ 11l+)sti rr pract cal� ( t.. In pup win ;t s Mission, the District will actively �a III li l energy souse .�sett Renewable Portfolio Standard - � a ,;4ald�l�I� °'I��ddlllil i Objective 6 - na "an effective, efficient and fiscally r. Goal 6.1 D modern, cost effective work me Goal d. :- employ a qualified and pro Goal 3 1", work conditions and proc nth, productivity and retention. Goal" cf will conduct an active cost control pr ,t view and implement a Financial Goals polic 5 velop appropriate financial procedures to assu e fmancia went. y I, 9 — Power Supply and GIS 2008 Priorities Cost Center 9 consists of three individuals, Assistant Manager/Power Supply Enginb$ Mapping Tec ➢ Utilize modern cost effective ,♦ equipment. ➢Purchase materials and supplies in .a co manner. xi>4a ,y. 1 M74114. _M ' `�'�* ,� 'k*, t i � 5 j 'sue ktt Y T f S # h ent 9 - Power Supply & GIS dget Increases / Decreases 2007 to 2008 ➢GIS expenditures and Budget are Electric ➢Labor Increases - Board approved Union Co' ➢Cost Center 9 2007 Budget $ ➢Cost Center 9 2008 Budget $ 7 ➢Budget $ ,Change 2007 t 2008 � � r �c 21 Y 3 x r � s ," t 9 — Power Supply & GIS • hn C a es to 2008 Budget • 2007 compared to 2008 ➢ Reduce in Professional Services due to lower UAMP concerning new generation d ev Oppanent. v ➢ Legal Fees for FERC cases - Same as Pacific Transmission Rate Case intervent ➢ Labor Costs up slightly T 3 y� Truckee Donner Public Utility District Appendices I Interdepaztmental Rent IV Transportation Overhead V Inventory Overhead VI Administrative Overhead VII Construction Overhead X Vehicle Replacement Schedule Truckee Donner Public Utility District Appendices 2006 2007 2008 Rent-Charged to Water $282, 186 $263,565 $274,053 Transportation Overhead $713, 795 $739,350 $812,053 31.48% 27.81% $10.05/hour Inventory Overhead $200,698 $200,968 $189,633 26.48% 21.31% 16.59 Admin Overhead $ 55,030 $ 57, 175 $ 60,060 1.30% 1. 19% 1. 16% Construction Overhead $295, 744 $306, 165 $295,971 43.56% 32.20% 28.95 2 Truckee Donner Public Utility District Other Appendices Previously Presented 2006 2007 2008 Labor Overhead $3Y540Y264 $4; 15 1 Y 385 $4y345y978 83.67% 86.24% 83.65% Electric Debt $3y806Y290 $3,,661,,492 $3y 614, 725 Water Debt $2Y 651,638 $2,, 632.898 $3y535y950 3 Agenda Item #14 - Revised 10116107 Truckee Donner Public Utility District Electric Revenues, Contributions & Transfers In - 2008 Budget Revenue: 1% growth19.94% rate increase Residential Sales $11,573,360 Commercial Sales 91 337,809 Public Authority Sales 1567810 Interdepartmental Sales 11 639, 787 Other Misc Revenue 916,262 CA Solar Initiative 177,400 Customer Contributions/Developer Fees 1,625,985 Subtotal $25,427,413 Transfers In From Facilities Fees $2,234,504 From Building Fund 32,494 From Sale of Property 400,000 Total Revenue and Transfers In $28,094,411 1 Electric Rate Increase Recap Revenue from energy sales before proposed increase $20,449,289 Revenue raised by estimated 1 % growth in sales 205,429 Revenue raised by 9.94% rate increase 2,053,048 Subtotal Revenue from Energy Sales $22, 707, 766 Other Misc Revenue 916,262 CA Solar Initiative 177,400 Customer Contributions/Developer Fees 1,625,985 Subtotal $25,427,413 Transfers In From Facilities Fees $ 2,234,504 From Building Fund 32,Y494 From Sale of Property 400,000 Total Revenue and Transfers In $28,094,411 2 2008 Budget Operations, Capital and Transfer Out Recap: Electric Board of Directors $ 85,836 General Manager 404,576 Administrative Services 11647,409 Conservation 11099,411 General Services 394,540 Electric Operations 2,810,511 Power Supply 517,574 Purchased Power 11, 106,410 Debt Service 3,614, 725 Capital Projects & Equipment 5,594,773 Subtotal $27,275, 765 Transfer to 2003 COP Reserve 300,000 Transfer to Rate Reserve 454,217 Transfer to Public Benefits Reserve 64,429 Total $285 094,411 3 Truckee Donner Public Utility District Water Revenues & Transfers In 2008 Budget Revenue: 2% growth/3% rate increase/3% transfer to unrestricted reserve Residential Sales $ 81 030,681 Commercial Sales 11 030,994 Fire Protection 129, 772 Interdepartmental Sales 1,441 Other Misc Revenue 423,918 Customer Contributions/Developer Fees 701,599 Subtotal $10,318,405 Transfers In From Loan Proceeds $ 3,411,379 From Facilities Fees for Projects 2,504, 104 From Facilities Fees for Debt 504,958 From Donner Lake Assessment District 800y 852 From Donner Lake Billing Surcharge 100,258 From Glenshire Billing Surcharge 166, 786 From Meter Reserve Fund 265,823 Total Revenue and Transfers In $18,072,565 4 2008 Budget Operations, Capital and Transfer Out Recap: Water Board of Directors $ 82,836 General Manager 348, 792 Administrative Services 1,069, 156 Conservation 51,902 General Services 79,328 Water Operations 4,479,511 Power Supply (including GIS) 202,881 Debt Service 3,535,950 Interdepartmental Rent 274,053 Capital Projects & Equipment 7,248,835 Subtotal $17,373,244 Transfer to Unrestricted Reserve 514,244 Transfer to Capital Reserve 184,499 Total $18,072,565 5