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Home My WebLink About12 Attachment 1- FY18 FY19 Budget SummaryTRUCKEE DONNER PUBLIC UTILITY DISTRICT FY18 & FY19 DRAFT BUDGET November 1, 2017 Resolution 2017-XX TABLE OF CONTENTS Executive Summary 1 Part I - Mission Statement and Goals 4 Part II – Operating, Repair, and Maintenance Plan – Electric Utility 7 Electric Operations Introduction 8 Electric Operations Revenue Statement 9 Summary of Electric Revenues and Expenses 10 Electric Expenditure Detail: Board of Directors 11 General Management 13 Administrative Services 15 Public Information/Conservation 17 Electric Operations 20 Information Technology (IT) 22 Part III – Operating, Repair, and Maintenance Plan – Water Utility 24 Water Operations Introduction 25 Water Operations Revenue Statement 26 Summary of Water Revenues and Expenses 27 Water Expenditure Detail: Board of Directors 28 General Management 31 Administrative Services 33 Public Information/Conservation 35 Water Operations 38 Information Technology (IT) 40 TABLE OF CONTENTS Continued: Part IV – Capital Improvement Plan – Electric and Water Utilities 42 Part V – Appendices: 47 Appendix 1 Interdepartmental Rent 48 Appendix 2 Budgeted Positions by Department 50 Appendix 3 Labor Overhead 52 Appendix 4 Transportation Overhead 54 Appendix 5 Administrative Overhead 56 Appendix 6 Construction Overhead 58 Appendix 7 Electric Debt Schedule 60 Appendix 8 Water Debt Schedule 61 Appendix 9 Vehicle Replacement Schedule 62 EXECUTIVE SUMMARY Truckee Donner Public Utility District (District) provides electric power to 13,700 customers and water to 12,900 customers. This service, along with capital replacements, is paid by rates. Expanding electric and water systems in response to growth in the community is paid by developer fees. The District compiles a two-year budget (FY18 and FY19) for the years ending December 31, 2018 and 2019. The budget reflects past performance, current requirements, future opportunities, and risks. The FY18 and FY19 budget is a balanced budget for both the District’s Electric Utility and Water Utility. That is to say, the revenue and transfers from reserves are equal to the sum of expenses, debt service, capital projects, and transfers to reserves. The budget includes a scheduled 3% electric and water rate increase for the FY18 and FY19 budget. The Electric Utility has transitioned from traditional electric resources to more renewable carbon free generation. The Water Utility is improving infrastructure while maximizing the benefits of investments in water meters and pipeline replacement. Both utilities are improving the reliability of the District’s SCADA and communication systems. The District continues to emphasize return on equity for all programs, resulting in stable rates and improvements in the District’s and customers’ bottom lines. This budget consists of five distinct parts. Part I Mission Statement Part II Electric Utility’s operations, maintenance and repairs Part III Water Utility’s operations, maintenance and repairs Part IV Capital budget for the electric and water systems Part V Appendices 1 The following table is a comparison of the FY18 and FY19 Budget to the FY17 Budget: Electric Water Total Electric Water Total Electric Water Total Elec Water Total Elec Water Total Revenue 22,958$ 12,561$ 35,519$ 24,817$ 12,745$ 37,562$ 25,526$ 13,216$ 38,742$ 8% 1% 6% 3% 4% 3% Expenses 21,727 8,334 30,061 21,571 8,241 29,812 22,120 8,492 30,612 -1% -1% -1% 3% 3% 3% Income 1,231$ 4,227$ 5,458$ 3,246$ 4,504$ 7,750$ 3,406$ 4,724$ 8,130$ Plus: From Funds 4,003$ 2,023$ 6,026$ 3,656$ 1,598$ 5,254$ 2,380$ 1,914$ 4,294$ -9% -21% -13% -35% 20% -18% Less: Debt Service 961 3,195 4,156 579 3,211 3,790 600 3,228 3,828 -40% 1% -9% 4% 1% 1% Capital Projects 4,082 2,895 6,977 6,091 2,595 8,686 4,827 3,140 7,967 49% -10% 24% -21% 21% -8% To Reserves 191 160 351 232 296 528 359 270 629 21% 85% 50% 55% -9% 19% Surplus (Deficit) -$ -$ -$ -$ -$ -$ -$ -$ -$ FY19 Budget % VarianceFY17 Budget FY18 Budget % Variance Budget Assumptions The key assumptions used in the FY18 and FY19 Budget were: · 3% inflation for FY19 · No new debt · Annual Electric rate increase of 3% in FY18 & FY19 · Annual Water rate increase of 3% in FY18 & FY19 · Contract negotiations set union labor increases at 3% for FY18 and 3% for FY19 · Management and Technical labor increases at 4.5% for FY18 and 3% for FY19 2 Overall Budget The Electric Utility budget is balanced with revenue collections, Carbon Cap & Trade (AB32) proceeds, and use of reserve funds. The Water Utility budget is balanced with revenue collections and the use of reserve funds. The Electric Utility revenue is projected to increase 8% due to increased usage combined with a 3% rate increase compared to the FY17 budget. The Water revenue is projected to have a 1% increase in FY18 due to increased conservation resulting in a decrease in usage reducing the effect of the 3% rate increase. A 3% projected Electric revenue increase in FY19 is due to a rate increase. The 4% Water increase projected in 2019 is due to a 3% rate increase and the addition of revenue estimated from a fee for the administration of annual backflow inspections for the backflow/cross connection program. Due to increased efficiencies the Electric and Water Utilities are budgeting a 1% decrease in expenses compared to the FY17 budget. Expenses increase 3% in both utilities in the FY19 budget compared to the FY18 budget due to anticipated inflation. Electric Utility The utility continues to focus on system maintenance, tree trimming and a high level of Renewable Portfolio Standards. The capital projects include; Meter Replacement Program, District Administration Building Remodel and Maintenance, Distribution Replacement and Improvement Projects, and additional projects included in the Electric masterplan. Water Utility The utility continues to focus on repair and maintenance of District facilities and equipment. Capital projects include the continuation of the SCADA Replacement Project, Pipeline Replacement Projects, Pump Station and Well Maintenance Projects, continuation of the Meter Installation Project, and implementation of Meter Maintenance and Replacement Project. 3 PART I THE FY18 & FY19 MISSION STATEMENT 44 MISSION STATEMENT The mission of Truckee Donner Public Utility District is to provide reliable, high quality water and electrical power services while meeting customer demand, and to manage District resources in a safe, open, responsible, environmentally sound manner at the lowest practical cost. 1.05.020 Objectives: 1. Responsibly serve the public. 2. Provide a healthy and safe work environment for all District employees. 3. Provide reliable and high quality water supply and distribution system to meet current and future needs. 4. Provide reliable and high quality electric supply and distribution system to meet current and future needs. 5. Manage the District in an environmentally sound manner. 6. Manage the District in an effective, efficient, and fiscally responsible manner. 1.05.030 Goals: 1. Responsibly serve the public. 1.1 Conduct the District’s business in a legal, ethical, open, and transparent manner. 1.2 Implement a proactive public outreach program. 1.3 Promote communication and cooperation with other public and private agencies. 1.4 Develop and implement high standards of customer service. 1.5 Develop and implement high operational standards, procedures, and Codes of Conduct. 2. Provide a healthy and safe work environment for all District employees. 2.1 Reduce the OSHA reportable injury frequency and severity rates relative to previous reporting year. 2.2 Comply with all State and Federal regulations regarding worker safety. 2.3 Maintain the District’s wellness program. 2.4 Reduce employee injuries by maintaining an active and effective safety program. 3. Provide reliable and high quality water supply and distribution system to meet current and future needs. 3.1 Maintain and implement a current Urban Water Management Plan which includes current and future projections of water quality, demand, and supply. 3.2 Maintain and implement a current Water Master Plan, including the required facilities to meet current and future demand and supply. 3.3 Secure the necessary water rights and other legally required documentation. 3.4 Conduct effective and efficient operations, maintenance, and replacement programs. 55 4. Provide reliable and high quality electric supply and distribution system to meet current and future needs. 4.1 Develop and implement Risk Management Policy that considers quality and quantity of all energy supply and transmission contracts and facilities. 4.2 Maintain and implement a long-term energy and load forecast consistent with Risk Management Policy. 4.3 Procure and contract for low cost electric power supplies to reliably meet current and future loads, consistent with the Renewable Portfolio Standards and Risk Management Policy. 4.4 Maintain and implement an Electric System Master Plan, including the required facilities to meet the current and future demand and reliable supply. 4.5 Provide effective and efficient maintenance and replacement programs. 4.6 Provide an effective, efficient, and safe operations program. 5. Manage the District in an environmentally sound manner. 5.1 Seek power supply from a resource mix that satisfies its Renewable Portfolio Standard. 5.2 Develop and implement a program of water and electric power use efficiency and conservation. 5.3 Support a program of distributed generation within the District’s service area. 5.4 Conduct District business in an environmentally lawful manner. 5.5 Minimize negative impact of District operations on the environment. 5.6 Provide key leadership in the stewardship of the District’s aquifer, watershed, and natural infrastructure. 6. Manage the District in an effective, efficient and fiscally responsible manner. 6.1 Utilize modern, cost effective work methods and equipment. 6.2 Employ a qualified and productive workforce. 6.3 Provide safe work conditions and procedures that encourage employee growth, productivity and retention. 6.4 Control the growth of the District’s discretional-operational spending to a rate less than the rate of inflation. 6.5 Review and update the Financial Goals policy to achieve a stable financial condition to include planning, revenue, debt, and reserve goals. 6.6 Develop appropriate financial procedures to assure responsible financial management. 66 PART II THE FY18 & FY19 OPERATING, MAINTENANCE, AND REPAIR ELECTRIC UTILITY 77 ELECTRIC OPERATING, MAINTENANCE & REPAIR PLAN INTRODUCTION The Electric budget projects total operating expenditures and transfers to reserve funds for FY18 and FY19 in the amounts of $22,383,117 and $23,079,269 respectively. Capital expenditures are budgeted for FY18 and FY19 in the amounts of $6,091,005 and $4,826,999 respectively. Total operating revenues and transfers from various reserve funds total $28,474,122 and $27,906,268. Of the $6,091,005 for FY18 capital expenditures, $3,603,406 is paid by operating funds. Of the $4,826,999 for FY19 capital expenditures, $3,621,224 is paid by operating funds. The remaining projects are funded by reserves. The FY18 and FY19 budget proposes a 3% electric rate increase each year and achieves an overall balanced budget. During FY18 and FY19, the District continues along the path of a balanced, diversified power supply, including increased carbon free energy purchases. In FY18 and FY19, we continue to commit resources to improving reliability in our service area and addressing back- logged maintenance projects. No new debt will be acquired. 88 ELECTRIC OPERATIONS REVENUE STATEMENT OPERATING BUDGET PRIOR 12 MOS BUDGET $ BUDGET % BUDGET BUDGET $ BUDGET % BUDGET REVENUE FY17 ENDING 6.2017 FY18 CHANGE CHANGE FY19 CHANGE CHANGE Residential Sales $11,704,400 $13,137,300 $12,981,651 $1,277,251 11% $13,347,313 $365,663 3% Commercial Sales 9,071,155 9,288,401 9,535,733 464,578 5% 9,821,805 286,072 3% Interdepartmental Sales 1,212,000 1,155,434 1,200,980 (11,020) -1% 1,237,009 36,029 3% Miscellaneous Operating Revenue 166,315 163,406 165,561 (754) 0% 167,217 1,656 1% Standby Revenue 23,171 22,680 21,530 (1,641) -7% 20,884 (646) -3% Pole Replacements and Contacts 160,000 484,347 262,000 102,000 64% 262,000 0 0% Interdepartmental Rent 561,479 557,540 524,567 (36,912) -7% 542,329 17,762 3% TOTAL OPERATING REVENUE $22,898,520 $24,809,108 $24,692,022 $1,793,502 8% $25,398,558 $706,536 3% Interest Income 60,600 110,475 125,000 64,400 106% 127,500 2,500 2% Transfer in from Vehicle Reserve Fund 338,432 167,358 422,346 83,914 25% 0 (422,346) -100% Transfer in from Capital Reserve Fund 1,236,019 77,962 2,065,253 829,234 100% 1,205,775 (859,478) -42% Transfer in from overhead to cover CalPers sidefund interest payment 960,675 54,260 61,094 (899,581) -94% 48,106 (12,988) -21% Transfer in from AB32 Reserve Fund 1,290,000 1,172,306 1,108,408 (181,592) -14% 1,126,330 17,922 2% Transfer in from CA Solar Initiative 177,400 177,400 0 (177,400)-100%0 0 0% TOTAL ELECTRIC REVENUE & TRANSFERS $26,961,646 $26,568,868 $28,474,122 $1,512,476 6%$27,906,268 ($567,854)-2% 99 BUDGET PRIOR 12 MOS BUDGET $ BUDGET % BUDGET BUDGET $ BUDGET % BUDGET RECAP REVENUES LESS EXPENSES FY17 ENDING 4.2017 FY18 CHANGE CHANGE FY19 CHANGE CHANGE ELECTRIC REVENUES & TRANSFERS $26,961,646 $26,568,868 $28,474,122 $1,512,476 6%$27,906,268 ($567,854)-2% LESS EXPENSES: Board of Directors 127,900 95,625 150,075 22,175 17% 148,344 (1,731) -1% General Management 635,214 623,782 763,970 128,756 20% 801,281 37,311 5% Administrative Services 1,426,771 1,275,612 1,356,174 (70,597) -5% 1,466,221 110,047 8% Conservation 1,217,240 839,236 899,255 (317,985) -26% 938,112 38,857 4% Electric Operations 4,358,927 5,223,137 4,550,246 191,319 4% 4,763,503 213,257 5% Information Technology (IT) 631,492 585,313 661,181 29,689 5% 701,955 40,774 6% Purchased Power 12,425,649 11,647,845 12,692,528 266,879 2% 12,784,886 92,358 1% GASB 68 Pension Sidefund Adjustment 408,800 388,348 0 (408,800) -100% 0 0 0% Building Maintenance (managed by Water Ops)495,753 482,582 498,109 2,356 0% 515,352 17,243 3% TOTAL OPERATING EXPENSES $21,727,746 $21,161,480 $21,571,537 ($156,209) -1% $22,119,653 $548,116 3% Debt Service (Appendix VIII) 960,675 943,988 579,518 (381,157) -40% 600,106 20,588 4% Transfer to Vehicle Reserve 190,630 187,854 232,062 41,432 22% 202,239 (29,823) -13% Transfer to Electric Rate Reserve Fund 0 213,990 0 0 0% 157,271 157,271 - Transfer to Electric Capital Fund 0 0 0 0 0% 0 0 0% TOTAL EXPENSES & TRANSFERS 22,879,051 22,507,311 22,383,117 (495,934)-2% 23,079,269 696,152 3% NET AVAILABLE FOR CAPITAL $4,082,595 $4,061,557 $6,091,005 $2,008,410 49%$4,826,999 ($1,264,006)-21% SUMMARY OF ELECTRIC REVENUES AND EXPENSES 1010 BOARD OF DIRECTORS (Electric Budget) The Board of Directors consists of five publically elected members who serve four-year terms. The Truckee Donner Public Utility District is a multi-county agency; including Nevada and Placer counties. The Board generally meets twice each month on the first and third Wednesdays. The Board conducts its business in a legal, ethical, open, and transparent manner. The Directors of the District represent customer interests, set policies and rates, study and assess implications of new legislation and alternatives. The Board of Directors are responsible for District policies, governance, and decision making for the District. The Board evaluates and provides direction and guidance on District business. The Board reviews and takes action on the overall District performance and performance reviews with the General Manager. The Board’s adopted Mission Statement and Statement of Objectives and Goals, were used to guide the FY18 and FY19 budget process. Staff has conducted a series of workshops starting on September 6, 2017 covering the major budget expenditures prior to presenting the draft budget. The purpose of these workshops was to educate the Board and the public, and to receive input and direction from the Board in completing the FY18 and FY19 budget. A public hearing was scheduled on November 1, 2017 to receive public input on the budget. The budget was scheduled for adoption on November 15, 2017. Staff continues with their commitments, at the Board’s direction, as it relates to public outreach, increase in efficiencies, cooperation, collaboration, and setting a high standards of ethical conduct. Meetings of the Board continue to be televised and live streamed in compliance with the Board’s dedication to transparency. All Board meetings meet and exceed the requirements set forth in the Ralph M. Brown Act. All of these actions help manage the District in an effective, efficient and fiscally responsible manner. 1111 ELECTRIC EXPENDITURE DETAIL BOARD OF BUDGET PRIOR 12 MOS BUDGET $ BUDGET % BUDGET BUDGET $ BUDGET % BUDGET DIRECTORS FY17 ENDING 4.2017 FY18 CHANGE CHANGE FY19 CHANGE CHANGE Outside Services Employed $12,875 $3,834 $25,000 $12,125 94% $25,750 $750 3% Miscellaneous General Expenses 115,025 91,791 125,075 10,050 9% 122,594 (2,481) -2% TOTAL $127,900 $95,625 $150,075 $22,175 17%$148,344 ($1,731)-1% This account is utilized to reflect costs associated with the District's general counsel attendance at board meetings and his performance of research on legal issues presented at the board level. This account covers compensation and benefits paid to directors, election, annual employee recognition dinner, training and conferences attended by directors, minor office supplies and equipment. 1212 GENERAL MANAGEMENT (Electric Budget) The District’s General Management Department consists of the General Manager, District Clerk, Special Projects Administrator, Public Information Officer/ Strategic Affairs Manager, and Human Resources/Risk Manager. The General Manager is the administrative head of the District with responsibility for managing the day-by-day affairs of the organization. The District Clerk manages the General Manager’s office and is responsible for all legislative actions for the Board of Directors, serves as the custodian of records and Election Officer for the District, ensures compliance with laws and regulations as it relates to the Clerk’s office, provides high level administrative duties to the General Manager and Board of Directors. The Special Projects Administrator manages the District’s solar and safety programs, acts as the District’s real property representative and oversees the District complex facilities. The Public Information Officer/Strategic Affairs manager is responsible for continued public outreach on all affairs of the District ensuring communication and collaboration with the community and partners, ensuring compliance on strategic and legislative and regulatory affairs of the District. The Human Resources/Risk Manager is responsible for managing all insurance matters including customer claims, employee benefits, workers compensation claims and coverage, ensuring compliance with the International Brotherhood Local Electrical Workers 1245 MOU, and keeping all employee documentation current. The primary role of the General Manager is to lead the District and serve as the primary contact between the elected Board and District staff. This includes overall fiscal responsibility, negotiating with the Union, operations, process, procedures, controls, staffing, and ensuring that the District is meeting its goals and objectives. The General Manager ensures certain matters appearing on the agenda are adequately researched and presented to the Board of Directors. The main District goals for FY18 and FY19 are: 6.1 Utilize modern, cost effective work methods and equipment; 6.2 Employ a qualified and productive workforce; 6.3 Provide safe work conditions and procedures that encourage employee growth, productivity and retention; 6.4 Control the growth of the District’s discretional-operational spending to a rate less than the rate of inflation; and 6.5 Ensure that the Districts various capital projects are implemented in a smooth and cost effective manner. In order to maintain the improved reporting relationship between the General Manager and the Board of Directors, the General Manager will continue to hold semi-annual performance reviews with the Board. An end-of-year performance review is scheduled February 2018 to review all of the General Manager’s accomplishments over the past year. The District’s remains committed to the safe and healthy work environment to all District employees. 1313 GENERAL BUDGET PRIOR 12 MOS BUDGET $ BUDGET % BUDGET BUDGET $ BUDGET % BUDGET MANAGEMENT FY17 ENDING 4.2017 FY18 CHANGE CHANGE FY19 CHANGE CHANGE Public Information $67,877 $70,933 $100,002 $32,125 47% $103,768 $3,767 4% Legislature & Regulations 28,105 64,105 75,730 47,625 169% 78,476 2,746 4% Administrative & General - Salaries 352,318 342,374 352,401 83 0% 365,882 13,481 4% Office Supplies & Expenses 35,670 44,276 46,150 10,480 29% 47,535 1,385 3% Outside Services Employed 38,625 32,345 63,000 24,375 63% 74,813 11,813 19% Injuries & Damages 20,687 20,055 18,064 (2,623) -13% 18,647 583 3% General Advertising Expenses 44,228 2,226 49,050 4,822 11% 50,537 1,487 3% Misc General Expenses 47,704 47,468 59,574 11,870 25% 61,624 2,050 3% TOTAL $635,214 $623,782 $763,970 $128,756 20%$801,281 $37,311 5% ELECTRIC EXPENDITURE DETAIL This account includes labor for department safety meetings and training and the organization's wellness program. This account is used for the cost of publishing ordinances, surplus material, and other legal ad requirements. This account is used to perform board related activities such as preparing meeting minutes, resolutions and ordinances; it is also charged with dues and memberships in electric utility organizations. This account is used to charge general administrative staff time other than safety and board related activities. This account is used to cover cell phone use, computer expenses, dues & memberships including LAFCO and NCPA, industry meetings, office supplies, postage, training, assessment, personnel expenses and safety . This account is used to charge the costs of general counsel to review contracts and agreements, property issues, insurance claims, bid issues, capital contract issues and union matters. This account includes the activities of the PIO plus the website and newsletter. This account is for legislation and regulation tracking labor. 1414 ADMINISTRATIVE SERVICES (Electric Budget) The Administrative Services Department supports both the electric and water utilities and is organized into two primary functional areas: Customer Service and Finance and Accounting. These functional areas include responsibility for the District’s customer services, conservation, collections, billing, meter reading, accounting, finance, contracts, and purchasing. It is staffed by 20 people and lead by the Administrative Services Director. During FY16 and FY17 the Conservation department was integrated with Customer Services which allows the District to utilize staff most efficiently and effectively and enhance the level of customer service we are able to offer our customers at a single point of contact. For the purposes of budgeting only, conservation remains a separate cost center but for functional and practical purposes the physical integration is complete. In FY17 the Contracts Administrator was transferred from the Water Utility to Administrative Services to provide additional efficiencies and expand the Administrative Services capabilities to support the utilities. It is anticipated that meter reading will continue to transition into the electric utility as new technology is deployed. Administrative Services will continue to utilize technology to increase customer engagement efficiently and accurately. The continued implementation of the District’s web-based portal, called, “Smart Hub,” enables customers to have easy, remote access to their power and water consumption, in addition to the already existing capability of paying bills on-line and establishing automatic recurring payments. The department has also been proactive in preparation to support significant advancements in technology including the electric utility meter replacement and improvement program and the water utility continuous flow (leak) automated customer notification system. Staff will continue to optimize these and other tools to minimize costs and still provide excellent customer service. Staff will continue to take advantage of opportunities to lower costs and improve internal controls and operating procedures for billing, accounting, and computer operations, as was done throughout the prior budget cycle resulting in steady department expense projections from FY16 and FY17 to the current budget cycle. Staff will continue to be trained and developed to provide safe work conditions and encourage employee growth, productivity and retention. The District’s financial goals will be reviewed annually to achieve a stable financial condition including planning, revenue, debt, and reserve goals. 1515 ADMINISTRATIVE BUDGET PRIOR 12 MOS BUDGET $ BUDGET % BUDGET BUDGET $ BUDGET % BUDGET SERVICES FY17 ENDING 4.2017 FY18 CHANGE CHANGE FY19 CHANGE CHANGE Meters/Services Operations Expenses $88,335 $44,443 $35,429 ($52,906) -60% $53,893 $18,464 52% Customer Installation Expense 10,089 918 732 (9,357) -93% 787 55 8% Customer Account Operations Expense-Salaries 79,881 96,925 83,607 3,726 5% 89,731 6,124 7% Meter Reading Expense 64,684 48,404 34,645 (30,039) -46% 52,596 17,950 52% Customer Records & Collections Expense 460,413 429,569 485,312 24,899 5% 512,292 26,980 6% Customer Records & Collections - Meter Readers 18,038 17,919 21,962 3,924 22% 23,338 1,376 6% Provision for Bad Debts 18,756 0 18,760 4 0% 18,760 0 0% Administrative & Operations General-Salaries 439,841 382,062 449,172 9,331 2% 481,449 32,277 7% Office Supplies & Expenses 72,504 73,004 74,761 2,257 3% 77,004 2,243 3% Outside Services Employed 24,984 30,778 31,474 $6,490 26%32,418 $944 3% Insurance 141,240 142,921 114,253 (26,987) -19% 117,681 3,428 3% Injuries & Damages (Safety)8,006 8,669 6,066 (1,940)-24%6,272 205 3% TOTAL $1,426,771 $1,275,612 $1,356,174 ($70,597)-5%$1,466,221 $110,047 8% ELECTRIC EXPENDITURE DETAIL This account is used by the meter readers to charge their time to perform meter connects, disconnects and service transfers. This account includes charges for GO165 inspections for the electric department as well as investigations of energy diversion. This account includes the management staff supervision of the customer service and billing functions. This account includes bank charges, answering service charges, phone charges, computer and network operating expenses, software maintenance and support for the accounting system, printed forms and material, office equipment leases and equipment maintenance expenses. This account includes any professional services hired from the outside such as audit or accounting services, trust services for our certificates of participation and community facilities districts and arbitrage calculation services for the same. This account Includes annual insurance premiums for property, liability, umbrella liability, directors & officers liability, difference in conditions, boiler & machinery coverage insurance. This account Includes costs for safety training, Department of Transportation Drug and Alcohol training, worker's compensation expenses for employees who have been injured and safety related equipment. This account is used to charge meter reading expenses which includes meter reader labor, overheads, and the hardware and software that supports the meter readers; it also includes their clothing allowance, uniform expenses, vehicle expenses and training. This account includes the major expenses involved in serving our customers. Included are answering and directing phone calls, answering customer questions, customer account setup expenses, taking and processing customer payments, creating connect, disconnect and transfer paperwork for the crews, creating and reviewing bills, expenses related to the printing and mailing of the bills, account collection expense, billing software and hardware support, standby billing expenses, billing equipment maintenance expenses, printed billing and collection forms, billing postage and customer service staff training. This account represents the amount of uncollectable bills for the year. This account includes most of the labor for the administration department except meter reading and customer account related expenses. It includes preparation of the budget and financial statements, accounts payable and payroll, construction accounting, cash management activities and processing the daily mail. This account includes the meter readers labor and overheads to deliver 48 hour notices and perform disconnect and reconnects relating to non-payment of utility bills. 1616 CONSERVATION (Electric Budget) The Conservation Department is responsible for providing energy and water conservation services and administration of the District’s State-mandated public benefits programs. The department was physically integrated into the Administrative Services department in the FY17 in order to provide customers enhanced and more efficient customer service through a single point of contact. Customer Services staff has been trained to provide customer service inclusive of conservation programs. In addition, two focus positions were created that concentrate more exclusively on the District’s conservation program planning, operations, and reporting. These two focus positions are the Conservation Specialist, and a Customer Service/Conservation Program Manager. This integration has allowed the District to decrease cost while improving customer experience and delivering cost-effective programs as measured by annual Evaluation, Measurement, and Validation (EM&V) results. The department has a very successful portfolio of energy efficiency and conservation programs. Significant progress has been made developing the District’s energy conservation programs with a continued emphasis on return on investment. The District continues to transition to new and emerging technologies, such as LED lighting and energy controls, which are an emphasis of the FY18 and FY19 budget. Key business programs include: Commercial Lighting Rebate; Business Green Partners; and special projects. Key residential programs include: Residential Energy Survey (RES); Residential Green Partners; Energy Savings Program (ESP) for income-qualified customers; Appliance Rebates; Refrigerator Recycle; Neighborhood Resource Mobilization (Block Party); and the School Conservation Education ‘Trashion Shows’ and Green Team projects. The District’s Solar PV Rebate Program, Pursuant to SB1, for residential, commercial, and non- profit/government customers completed in FY17 and is not planned for FY18 or FY19. The District continues to expand its presence in the community through additional public event participation. The District began attending local Farmer’s Markets and re-energized engagement in the popular Truckee Thursday events. An emphasis on reaching our conservation goals through active community engagement will remain a priority for the current budget cycle. The budget also reflects decrease of spending in certain program areas due to continued saturation of some of the District’s energy conservation programs and added challenges to maintaining cost-effective programs given the current regulatory and political environment. These decreases are in alignment with the District’s 10 year projections and are similar to those seen throughout the industry. Plug-in Electric Vehicles (PEV’s) are a growing area of investment for the District, however the emphasis has shifted to public engagement and support with less emphasis in capital upgrades. This is the result of 1717 growing private investment in infrastructure. The District, as part of our entrance into California’s Low Carbon Fuel Standard (LCFS) market, is working on a new residential electric vehicle charger rebate. Customer engagement programs, enabled by the District’s AMI meter project along with improvements in the NISC SmartHub customer account software, also show great promise. To maintain and enhance the District’s conservation public outreach programs, the department with support from the Public Information and Strategic Affairs Department, will enhance communication to our customers through community involvement, events, the web-site and social media (Facebook and Twitter), and traditional communications and outreach. One emerging theme in electric and water utilities is the role of the local utility as trusted advisors on electric vehicles, solar, conservation, and managing utility accounts. The District will continue to build relationships with local and state partners while conducting our business in an open and transparent manner. 1818 BUDGET PRIOR 12 MOS BUDGET $ BUDGET % BUDGET BUDGET $ BUDGET % BUDGET CONSERVATION FY17 ENDING 4.2017 FY18 CHANGE CHANGE FY19 CHANGE CHANGE Public Benefits - Conservation $539,643 $327,600 $383,448 ($156,195) -29% $412,470 $29,023 8% Public Benefits - Research & Development 3,522 111 13,167 9,645 274% 13,586 419 3% Public Benefits - Income-Qualifed 139,498 16,805 84,223 (55,275) -40% 84,382 159 0% Public Benefits - Renewable Power 182,880 198,607 152,637 (30,243) -17% 152,637 0 0% Public Benefits - Rebates 143,260 199,400 236,124 92,864 65% 244,448 8,324 4% Admin & General Salaries 42,269 38,083 4,891 (37,378) -88% 5,080 189 4% Office Supplies & Expenses 12,876 20,424 21,494 8,618 67% 22,138 645 3% General Advertising 743 35,559 664 (79) -11% 684 20 3% Misc General Expense 9,720 2,647 2,608 (7,112) -73% 2,686 78 3% SUB TOTAL $1,074,411 $839,236 $899,255 ($175,156)-16%$938,112 $38,857 4% CA Solar Initiative - SB1 142,829 0 0 (142,829) -100% 0 0 0% TOTAL $1,217,240 $839,236 $899,255 ($317,985)-26%$938,112 $38,857 4% This account includes energy conservation and efficiency rebates. ELECTRIC EXPENDITURE DETAIL This account includes TDPUD marketing and media activities. This account includes District solar rebates. This account includes support of community activities such as sponsorship of the Truckee Home Show, Chamber activities, etc. The account includes general energy conservation and efficiency programs and wire to water. This account includes office supplies, dues, memberships and meeting and training expenses. This account includes energy conservation and efficiency R&D activities. This account includes the administrative salaries to perform various administrative projects. This account includes income-qualifed programs. This account includes renewable purchases and programs. 1919 ELECTRIC OPERATIONS The Electric Operations is responsible for operating, maintaining, repairing, and expanding the District’s electric distribution system. The primary responsibility is to provide effective and efficient maintenance and replacement programs and provide an effective, efficient, and safe operations program. The FY18 and FY19 budget staffs the Department with an Electric Utility Manager (also serving as Power Supply Engineer and Assistant General Manager), a Superintendent, a Superintendent/Project Administrator, a Senior Mechanic, a Mechanic, two Electric System Engineers, an additional Electric Engineer to be hired in 2018, two Electrician / Meter Technicians, one Foreman Electrician, three Foremen, a Lead Lineman, a Substation Lineman, seven Lineman and two Apprentice Lineman. Electric Operations provides work conditions and procedures that encourage employee safety, growth, productivity, and retention. Apprentices are trained both internally and externally. Journeymen are trained to utilize approved rubber gloving practices. Employees are trained on underground practices and materials, as the District transitions to underground utilities. During FY17, District growth continued to increase at a modest pace and is forecasted to continue this growth in FY18 and FY19. The department will concentrate efforts on system maintenance. Right-of-way maintenance to reduce outages will be maintained, and approximately ninety poles have been identified for replacement each year. Replacement of existing drive-by AMR meters with a fixed base collector system for AMI meter system is budgeted for implementation in FY18 and FY19. Capital improvements will be implemented as identified in the Electric System Master Plan. 2020 ELECTRIC BUDGET PRIOR 12 MOS BUDGET $ BUDGET % BUDGET BUDGET $ BUDGET % BUDGET OPERATIONS FY17 ENDING 4.2017 FY18 CHANGE CHANGE FY19 CHANGE CHANGE Operations/PM Sup & Engineering $1,173,468 $1,014,528 $1,150,200 ($23,268) -2% $1,224,189 $73,989 6% Substation Operations/PM 174,872 159,180 172,153 (2,719) -2% 180,364 8,211 5% Distribution Operations/PM 1,201,018 1,042,559 1,352,821 151,803 13% 1,395,589 42,767 3% Security/Street Light Operations/PM 1,246 373 1,232 (14) -1% 1,279 47 4% Meter Operations/PM 85,469 252,253 91,986 6,517 8% 95,799 3,813 4% Customer Installation Operations/PM 199,064 207,539 247,086 48,022 24% 256,862 9,776 4% Misc General Operations/PM 515,529 414,767 493,109 (22,420) -4% 516,539 23,430 5% Maintenance of Station Equipment 4,206 35,609 20,000 15,794 376% 20,600 600 3% Maintenance of Distribution Lines 467,798 1,641,607 457,724 (10,074) -2% 478,081 20,357 4% Maintenace of Security/Street Lights 3,297 1,151 1,668 (1,629) -49% 1,728 60 4% Professional Services 148,320 144,975 201,975 53,655 36% 218,034 16,059 8% Injuries & Damages (Safety) 252,342 261,726 242,243 (10,099) -4% 252,433 10,190 4% Regulatory Commission Expense 132,298 46,870 118,048 (14,250) -11% 122,005 3,957 3% TOTAL $4,358,927 $5,223,137 $4,550,246 $191,319 4%$4,763,503 $213,257 5% This account includes staff labor and legal fees for any FERC activity. This account primarily includes the inspection of new residential services including checks of wiring code compliance. It is also used to do field investigations of customer high bill complaints, voltage irregularities and energy diversion. This account includes testing of transformer oil to determine PCB content, GIS mapping of the electric system, SCADA repairs and maintenance, cell phones qne pages. It also includes computer hardware and software maintenance, clothing allowance, DMV physicals, meals, uniforms, land fill charges, meeting expenses, advertising, new employee testing, employee development and training, and Underground Service Alert marking of utilities. This account Includes labor for safety meetings, safety equipment and safety meeting/training expenses. This account Includes labor and material to maintain the reclosers and regulators within the substations. This account includes labor, materials and supplies (replacement bulbs, photocells and fixtures) for the maintenance and repair of security and street lights. This account includes payments to Energy Source and Power Supply consultants. It also includes UAMPS expenditures. This account primarily includes labor and material material for recloser repair, distribution line repair, damage tree clearing, standby labor and storm damage repair. This account Includes all work done on, and within, substations including snow removal, maintenance, repairs and associated materials and employee training. This account Includes all maintenance work such as mandated programs, pole testing, tree trimming, pole clearing, small tools and employee training. This account includes connecting and disconnecting meters, checking the operation of demand meters, meter audits where we verify the wiring and accuracy of commercial meter installations, rebuilding of old commercial meter installations and training of meter technicians. ELECTRIC EXPENDITURE DETAIL This account is utilized by the electric superintendent and electric engineer for supervision, engineering and management of District electric operations and electric projects. It also includes design and engineering labor of District electric projects. This account Includes the purchase and installation of street and security lights throughout the District. 2121 INFORMATION TECHNOLOGY (IT) (Electric Budget) The Information Technology (IT) Department is headed by the IT/IS/GIS Operations Manager and also includes the positions IT/GIS Analyst, IT/SCADA Engineer,and the Network & Systems Administrator positions, responsible for network, storage and personal devices. Internal IT staff helps reduce outside contractor costs for the District’s IT needs, increase IT knowledge of systems security, and provide additional accountability and redundancy. Information Technology is to implement technology strategies that optimize the operations of the District by providing tools that enable the District to operate faster, better, and more cost efficiently, while providing secure access to critical control, mapping, and information systems. Information Technology’s aim is to provide timely, relevant, and accurate information, when and where it is needed, to support sound decisions that improve the quality, efficiency, cost, safety, and environmental footprint of the products and services the District delivers and uses. To achieve the goals and implement the strategies in the IT Master Plan, utilizing ten guiding principles below focusing on leadership and excellence through quality of service, responsiveness, innovation, professionalism, and teamwork. These principles require commitment not only from the District’s IT professionals, but from all District employees. 1. Consult and advise department heads to drive IT initiatives according to business needs, goals, and objectives, and developing a sound business case before making any new investment. 2. View IT from the perspective of the entire District and not from the perspective of individual departments. 3. Acquire, manage, and use technology resources economically and efficiently through standardized information technology selection and implementation processes. 4. Securely hold and manage technology assets to protect private information. 5. Develop mechanisms and processes to share information easily within the organization and with customers and partners. 6. Understand that availability and access to technology is a given, and design and build systems accordingly. 7. Aggregate, where feasible, to reduce duplication, and employ information technology that is flexible and interoperable to respond quickly and efficiently to changing business needs. 8. Devise strategies to leverage investments in the District’s existing technology. 10. Train the workforce in the skills needed to effectively use IT systems and the information they contain. 2222 BUDGET PRIOR 12 MOS BUDGET $ BUDGET % BUDGET BUDGET $ BUDGET % BUDGET INFORMATION TECHNOLOGY (IT) FY17 ENDING 4.2017 FY18 CHANGE CHANGE FY19 CHANGE CHANGE Engineering & SCADA Operations $69,929 $45,191 $64,166 ($5,763) -8% $66,580 $2,414 4% GIS/Engineering Operations 127,822 109,714 149,312 21,490 17% 158,830 9,518 6% Meter Reading 13,014 8,334 11,886 (1,128) -9% 12,416 531 4% Customer Records 110,080 107,805 121,379 11,299 10% 125,117 3,738 3% Administrative & General IT Ops 260,027 284,225 262,455 2,428 1% 285,458 23,003 9% Office Supplies & Expenses 22,536 25,732 22,525 (11) 0% 23,201 676 3% Outside Services Employed 24,564 0 28,000 3,436 14% 28,840 840 3% This account is for outside professional services contracted to maintain hardware, software and data. Safety 3,520 4,312 1,458 (2,062) -59% 1,513 55 4% This account includes department labor for safety meetings, safety equipment and training expenses. TOTAL $631,492 $585,313 $661,181 $29,689 5%$701,955 $40,774 6% This account includes office supplies, dues, memberships, meeting and training expenses. This account is for the maintenance of software and data that supports engineering and SCADA. This account is for the maintenance of software and data that supports Customer Information and Customers. This account is for the maintenance of software and data that supports meter technology and AMI. ELECTRIC EXPENDITURE DETAIL This account is for the operational use of SCADA, Outage Management and Engineering support. This account is for the maintenance of hardware and software infrastructure that supports data transport, storage and security. 2323 PART III THE FY18 & FY19 OPERATING, MAINTENANCE, AND REPAIR WATER UTILITY 2424 WATER OPERATIONS INTRODUCTION The Water budget projects total operating expenditures and transfers to reserve funds for FY18 and FY19 in the amount of $11,748,076 and $11,990,064 respectively. The Water budget also forecasts capital expenditures for FY18 and FY19 in the amount of $2,595,309 and $3,140,043 respectively. For capital expenditures, $2,291,626 and $2,560,205 will be paid by rates each year. The remaining costs will be paid from reserve funds. Operating revenues and transfers from various reserve funds total $14,343,384 for FY18 and $15,130,107 for FY19. The water budget proposes a 3% rate increase in FY18 and a 3% rate increase in FY19, achieving an overall balanced budget. The mechanics and hydraulics of water utility service is very complex in a mountain environment. The majority of the District’s water supply comes from the Martis Valley Aquifer in the southeast portion of the service territory. The customer base is spread over forty-six square miles and covers an elevation change from 5,800 feet to 7,500 feet. The system currently consists of 13 wells, 218 miles of pipeline, 36 storage tanks, and 24 pump stations. This complex system is expensive to operate, maintain, repair and replace. A main goal of the department control the operating costs to minimize future rate increases. In FY18 and FY19, the District is receiving a return on equity of the pipeline replacement and Wire to Water efficiency programs with a reduction in total energy usage. The General Manager will continue as the Water Utility Manager. During FY18 and FY19, the Water Utility will continue with operations and maintenance programs, system replacement and capital projects, installation of water meters, the SCADA replacement project and on-going conservation programs. 2525 OPERATING BUDGET PRIOR 12 MOS BUDGET $ BUDGET % BUDGET BUDGET $ BUDGET % BUDGET REVENUE FY17 ENDING 6.2017 FY18 CHANGE CHANGE FY19 CHANGE CHANGE Residential Sales $10,727,529 $8,440,369 $10,711,730 ($15,799) 0% $11,060,382 $348,652 3% Commercial Sales 1,356,673 985,112 1,576,712 220,039 16% 1,623,946 47,234 3% Misc. Operating Revenue 234,479 192,942 177,206 (57,273) -24% 253,978 76,772 43% Miscellaneous Rents 39,535 55,075 69,085 29,550 75% 70,121 1,036 2% Standby Revenue 145,840 138,480 133,440 (12,400) -9% 129,437 (4,003) -3% TOTAL OPERATING REVENUE $12,504,056 $9,811,978 $12,668,172 $164,116 1% $13,137,863 469,691 4% Interest Income 57,541 71,103 76,865 19,324 34% 77,633 769 1% Transfer in from Facilities Fees & Reserve - Debt - 2006 COP 356,070 356,332 356,284 214 0% 355,324 (960) 0% Transfer in from Glenshire billing surcharge-Pipeline loan 166,786 166,786 0 (166,786) -100% 0 0 0% Transfer in from DLAD surcharge for debt payment 800,852 800,852 800,852 0 0% 800,852 0 0% Transfer in from DLAD billing surcharge - 2006 COPs 98,120 98,906 96,801 (1,319) -1% 100,207 3,406 4% Transfer in from Meter Reserve Fund 285,933 104,798 303,681 17,748 6% 196,319 (107,362) -35% Transfer in from Capital Reserve Fund 224,356 0 0 (224,356) -100% 0 0 0% Transfer in from Vehicle Reserve Fund 91,398 248,260 0 (91,398) -100% 429,838 429,838 100% Transfer in from overhead to cover CalPers sidefund interest payment 0 36,172 40,729 40,729 100% 32,070 (8,659) -21% TOTAL WATER REVENUE & TRANSFERS $14,585,112 $11,695,187 $14,343,384 ($241,728)-2%$15,130,107 $786,722 5% WATER OPERATIONS REVENUE STATEMENT 2626 BUDGET PRIOR 12 MOS BUDGET $ BUDGET % BUDGET BUDGET $ BUDGET % BUDGET RECAP REVENUES LESS EXPENSES FY17 ENDING 4.2017 FY18 CHANGE CHANGE FY19 CHANGE CHANGE WATER REVENUES & TRANSFERS $14,585,112 $11,695,187 $14,343,384 ($241,728) -2% $15,130,107 $786,722 5% LESS EXPENSES Board of Directors 127,900 95,356 150,075 22,175 17% 148,344 (1,731) -1% General Management 585,334 578,687 693,307 107,973 18% 717,413 24,105 3% Administrative Services 1,300,598 1,202,390 1,299,617 (981) 0% 1,374,588 74,971 6% Conservation 191,344 128,577 110,492 (80,852) -42% 118,978 8,486 8% Water Operations 4,687,315 4,636,023 4,871,371 184,056 4% 4,963,126 91,755 2% Information Technology (IT) 567,904 589,833 591,896 23,992 4% 627,662 35,766 6% GASB 68 Pension Sidefund Adjustment 312,353 300,229 0 (312,353) -100% 0 0 0% Interdepartmental Rent (Appendix I)561,479 557,540 524,567 (36,912)-7%542,329 17,762 3% TOTAL OPERATING EXPENSES $8,334,227 $8,088,635 $8,241,327 ($92,901) -1% $8,492,441 $251,114 3% Debt Service (Appendix IX) 3,194,771 3,193,843 3,210,749 15,978 1% 3,228,003 17,254 1% Transfer to Vehicle Reserve Fund 159,884 157,556 164,680 4,796 3% 169,620 4,940 3% Transfer to Operating Reserve 0 0 131,320 131,320 - 100,000 (31,320) -24% TOTAL EXPENSES & TRANSFERS $11,688,882 $11,440,033 $11,748,076 $59,193 1% $11,990,064 $241,988 2% NET AVAILABLE FOR CAPITAL $2,896,230 $255,155 $2,595,309 ($300,921)-10%$3,140,043 $544,734 21% SUMMARY OF WATER REVENUES AND EXPENSES 2727 BOARD OF DIRECTORS (Water Budget) The Board of Directors consists of five publically elected members who serve four-year terms. The Truckee Donner Public Utility District is a multi-county agency; including Nevada and Placer counties. The Board generally meets twice each month on the first and third Wednesdays. The Board conducts its business in a legal, ethical, open, and transparent manner. The Directors of the District represent customer interests, set policies and rates, study and assess implications of new legislation and alternatives. The Board of Directors are responsible for District policies, governance, and decision making for the District. The Board evaluates and provides direction and guidance on District business. The Board reviews and takes action on the overall District performance and performance reviews with the General Manager. The Boards adopted Mission Statement and Statement of Objectives and Goals, which were used to guide the FY18 and FY19 budget process. Staff has conducted a series of workshops starting on September 6, 2017 covering the major budget expenditures prior to presenting the draft budget. The purpose of these workshops was to educate the Board and the public, and to receive input and direction from the Board in completing the FY18 and FY19 budget. A public hearing was scheduled on November 1, 2017 to receive public comment on the budget. The budget was scheduled for adoption on November 15, 2017. Staff continues with their commitments, at the Board’s direction, as it relates to public outreach, increase in efficiencies, cooperation, collaboration, setting a high standards with high ethical conduct. Board of Director meetings continue to be televised and live streamed in compliance with the Board’s dedication to transparency. All Board meetings meet and exceed the requirements set forth in the Ralph M. Brown Act. All of these actions help manage the District in an effective, efficient and fiscally responsible manner. 2828 BOARD OF BUDGET PRIOR 12 MOS BUDGET $ BUDGET % BUDGET BUDGET $ BUDGET % BUDGET DIRECTORS FY17 ENDING 4.2017 FY18 CHANGE CHANGE FY19 CHANGE CHANGE Outside Services Employed $12,875 $3,834 $25,000 $12,125 94% $25,750 $750 3% Miscellaneous General Expenses 115,025 91,522 125,075 10,050 9% 122,594 ($2,481) -2% TOTAL $127,900 $95,356 $150,075 $22,175 17%$148,344 ($1,731)-1% This account is utilized to reflect costs associated with the District's general counsel attendance at Board meetings and his performance of research on legal issues presented at the Board level. This account covers compensation and benefits paid to Directors, election, annual employee recognition dinner, training and conferences attended by Directors, minor office supplies and equipment. WATER EXPENDITURE DETAIL 2929 GENERAL MANAGEMENT (Water Budget) The District’s General Management Department consists of the General Manager; District Clerk, Special Projects Administrator, Public Information Officer/ Strategic Affairs Manager, and Human Resources/Risk Manager. The General Manager is the administrative head of the District with responsibility for managing the day-by-day affairs of the organization. The District Clerk manages the General Managers office and is responsible for all legislative actions for the Board of Directors, serves as the custodian of records and Election Officer for the District, ensures compliance with laws and regulations as it relates to the Clerk’s office, provides high level administrative duties to the General Manager and Board of Directors. The Special Projects Administrator manages the District’s solar and safety programs, acts as the District’s real property representative and oversees the District complex facilities. The Public Information Officer/Strategic Affairs manager is responsible for continued public outreach on all affairs of the District ensuring communication and collaboration with the community and partners, ensuring compliance on all strategic and legislative and regulatory affairs of the District. The Human Resources Manager is responsible for managing employee benefits, workers compensation claims and coverage, ensuring compliance with the International Brotherhood Local Electrical Workers 1245 MOU, and keeping all employee documentation current. The primary role of the General Manager is to lead the District and serve as the primary contact between the elected Board and District staff. This includes overall fiscal responsibility, negotiating with the Union, operations, process, procedures, controls, staffing, and ensuring that the District is meeting its goals and objectives. The General Manager ensures certain matters appearing on the agenda are adequately researched and presented to the Board of Directors. The main District goals for FY18 and FY19 are: 6.1 Utilize modern, cost effective work methods and equipment; 6.2 Employ a qualified and productive workforce; 6.3 Provide safe work conditions and procedures that encourage employee growth, productivity and retention; 6.4 Control the growth of the District’s discretional-operational spending to a rate less than the rate of inflation; and 6.5 Ensure that the Districts various capital projects are implemented in a smooth and cost effective manner. In order to maintain the improved reporting relationship between the General Manager and the Board of Directors, the General Manager will continue to hold semi-annual performance reviews with the Board. An end-of-year performance review is scheduled February 2018 to review all of the General Manager’s accomplishments over the past year. The District’s remains committed to the safe and healthy work environment to all District employees. 3030 GENERAL MANAGEMENT (Water Budget) The District’s General Management Department consists of the General Manager; District Clerk, Special Projects Administrator, Public Information Officer/ Strategic Affairs Manager, and Human Resources/Risk Manager. The General Manager is the administrative head of the District with responsibility for managing the day-by-day affairs of the organization. The District Clerk manages the General Managers office and is responsible for all legislative actions for the Board of Directors, serves as the custodian of records and Election Officer for the District, ensures compliance with laws and regulations as it relates to the Clerk’s office, provides high level administrative duties to the General Manager and Board of Directors. The Special Projects Administrator manages the District’s solar and safety programs, acts as the District’s real property representative and oversees the District complex facilities. The Public Information Officer/Strategic Affairs manager is responsible for continued public outreach on all affairs of the District ensuring communication and collaboration with the community and partners, ensuring compliance on all strategic and legislative and regulatory affairs of the District. The Human Resources Manager is responsible for managing employee benefits, workers compensation claims and coverage, ensuring compliance with the International Brotherhood Local Electrical Workers 1245 MOU, and keeping all employee documentation current. The primary role of the General Manager is to lead the District and serve as the primary contact between the elected Board and District staff. This includes overall fiscal responsibility, negotiating with the Union, operations, process, procedures, controls, staffing, and ensuring that the District is meeting its goals and objectives. The General Manager ensures certain matters appearing on the agenda are adequately researched and presented to the Board of Directors. The main District goals for FY18 and FY19 are: 6.1 Utilize modern, cost effective work methods and equipment; 6.2 Employ a qualified and productive workforce; 6.3 Provide safe work conditions and procedures that encourage employee growth, productivity and retention; 6.4 Control the growth of the District’s discretional-operational spending to a rate less than the rate of inflation; and 6.5 Ensure that the Districts various capital projects are implemented in a smooth and cost effective manner. In order to maintain the improved reporting relationship between the General Manager and the Board of Directors, the General Manager will continue to hold semi-annual performance reviews with the Board. An end-of-year performance review is scheduled February 2018 to review all of the General Manager’s accomplishments over the past year. The District’s remains committed to the safe and healthy work environment to all District employees. 3131 GENERAL BUDGET PRIOR 12 MOS BUDGET $ BUDGET % BUDGET BUDGET $ BUDGET % BUDGET MANAGEMENT FY17 ENDING 4.2017 FY18 CHANGE CHANGE FY19 CHANGE CHANGE Public Information $67,877 $72,840 $100,002 $32,125 47% $103,768 $3,767 4% Legislature & Regulations 12,040 44,123 53,668 41,628 346% 55,635 1,967 4% Administrative & General - Salaries 352,318 342,546 352,401 83 0% 365,882 13,481 4% Office Supplies & Expenses 35,670 44,730 46,150 10,480 29% 47,535 1,385 3% Outside Services Employed 38,625 19,974 62,000 23,375 61% 62,813 813 1% Injuries & Damages (Safety) 20,687 20,367 18,064 (2,623) -13% 18,647 583 3% General Advertising Expenses 22,372 2,780 23,050 678 3% 23,757 707 3% Misc General Expenses 35,745 31,327 37,974 2,229 6% 39,376 1,402 4% TOTAL $585,334 $578,687 $693,308 $107,974 18%$717,413 $24,104 3% This account is used to perform board related activities such as preparing meeting minutes, resolutions and ordinances; it is also charged with dues and memberships in electric utility industry organizations. This account is used to charge general administrative staff time other than safety and board related activities. This account is used to cover cell phone use, computer expenses, dues & memberships including LAFCO, industry meetings, office supplies, postage, training, assessment, personnel expenses and safety . This account is used to charge the costs of general counsel to review contracts and agreements, property issues, insurance claims, bid issues, capital contract issues and union matters. WATER EXPENDITURE DETAIL This account includes the activities of the PIO plus the website and newsletter. This account is for legislation and regulation tracking labor. This account includes labor for department safety meetings and training and the organization's wellness program. This account is used for the cost of publishing ordinances, surplus material, and other legal ad requirements. 3232 ADMINISTRATIVE SERVICES (Water Budget) This section will describe specific water considerations within the FY18 and FY19 budget. The narrative contained in the electric section of the budget describes the general function and organization of Administrative Services, which also apply to the Water Utility. Beginning in FY09, residential water meters were installed. Over 97% of all customers have a meter and are being billed volumetrically. The remaining 3% will continue to be installed to achieve state requirements throughout the FY18 and FY19 budget period. It is anticipated existing Water Utility employees will continue meter installations in FY18 and that an outside contractor may complete the installations in FY19 and after. Starting in FY19 the budget includes phased replacement of the FY09 water meters which is necessary as the current meters are anticipated to have a 10 year useful battery life which will be reached during this budget period. The residential water meters identify continuous flow including malfunctioning stop-and-drain valves. The District is continuing to advance technology and is currently deploying an automatic customer notification system to contact customers who have possible leaks so that they may quickly identify and correct problems. The District has implemented custom software called the “Water Tool” that allows customers to view their own water consumption over the internet to help identify leaks and monitor water conservation efforts. This tool provides customers a visual target to aid in achieving the District’s current voluntary post-drought water reduction goals. 3333 ADMINISTRATIVE BUDGET PRIOR 12 MOS BUDGET $ BUDGET % BUDGET BUDGET $ BUDGET % BUDGET SERVICES FY17 ENDING 4.2017 FY18 CHANGE CHANGE FY19 CHANGE CHANGE Meters/Services Operations Expenses $4,653 $0 $1,865 ($2,788) -60% $2,836 $972 52% Customer Account Operations Expense-Salaries 79,881 97,060 83,607 3,726 5% 89,731 6,124 7% This account includes the management staff supervision of the customer service and billing functions. Meter Reading Expense 4,560 1,848 1,366 (3,194) -70% 1,889 523 38% Customer Records & Collections Expense 474,145 375,593 485,312 11,167 2% 512,292 26,980 6% Provision for Bad Debts 9,240 0 9,240 0 0% 9,240 0 0% This account represents the amount of uncollectable bills for the year. Administrative & Operations General-Salaries 439,841 433,194 449,172 9,331 2% 481,449 32,277 7% Office Supplies & Expenses 72,504 70,517 74,761 2,257 3% 77,004 2,243 3% Outside Services Employed 40,188 47,601 46,904 $6,716 17% 48,311 1,407 3% Insurance 172,320 169,274 144,423 (27,897) -16% 148,756 4,333 3% Injuries & Damages (Safety) 3,266 7,303 2,967 (299) -9% 3,079 112 4% TOTAL $1,300,598 $1,202,390 $1,299,617 ($981)0%$1,374,588 $74,971 6% This account includes any professional services hired from the outside such as audit or accounting services, trust services for our certificates of participation and community facilities districts and arbitrage calculation services for the same. This account Includes annual insurance premiums for property, liability, umbrella liability, directors & officers liability, difference in conditions, boiler & machinery coverage insurance. This account Includes costs for safety training, Department of Transportation Drug and Alcohol training, worker's compensation expenses for employees who have been injured and safety related equipment. This account includes bank charges, answering service charges, phone charges, computer and network operating expenses, software maintenance and support for the accounting system, printed forms and material, office equipment leases and equipment maintenance expenses. WATER EXPENDITURE DETAIL This account is used by the meter readers to charge their time to perform meter connects, disconnects and service transfers. It is also used for investigating customer high bill complaints. This account is used to charge meter reading expenses which includes meter reader labor, overheads, and the hardware and software that supports the meter readers; it also includes their clothing allowance, uniform expenses, vehicle expenses and training. This account includes the major expenses involved in serving our customers. Included are answering and directing phone calls, answering customer questions, customer account setup expenses, taking and processing customer payments, creating connect, disconnect and transfer paperwork for the crews, creating and reviewing bills, expenses related to the printing and mailing of the bills, account collection expense, billing software and hardware support, standby billing expenses, billing equipment maintenance expenses, printed billing and collection forms, billing postage and customer service staff training. This account includes most of the labor for the administration department except meter reading and customer account related expenses. It includes preparation of the budget and financial statements, accounts payable and payroll, construction accounting, cash management activities, processing the daily mail. 3434 CONSERVATION (Water Budget) This section will describe specific water conservation objectives within the FY18 and FY19 budgets. Significant progress has been made delivering water conservation programs, including an automated process to inform customers electronically if the District detects continuous flow of water; a potential leak situation. This allows the District to proactively contact customers and effectively address potential water waste situations. In addition, staff has continued to support the Water Efficient Toilet Rebate, Water Efficient Toilet Exchange, Customer Water Leak Repair Rebate, and Green Partners Water programs. The District continues to maintain the Patricia S. Sutton Conservation Garden, and has used this educational tool to host multiple events and educate the public on how to have beautiful landscaping and save water. For FY18 the District plans to incorporate a community bike share program within the garden, further increasing traffic, and educational opportunities. The combined impacts of water main-line replacements, the water-meter conservation effect, and water conservation programs have lowered water consumption by almost 40% since 2006. This dramatic reduction has allowed the District to maximize existing infrastructure and avoid capital expenses. However, the reduced water use also means that existing and future water conservation efforts need to be more targeted towards maximizing return on investment while addressing the District’s peak summer water use due, mostly, to customer irrigation. The well-documented California drought and the series of Executive Orders from Governor Brown spawning a series of California State Water Resources Control Board (SWRCB) Emergency Drought Regulations put a strain on the department’s capacity and resources in prior budget cycles. The FY18 and FY19 budget is built upon the District’s current voluntary 10% water reduction goals which has enabled Conservation to reduce year-over-year costs while maintaining existing programs. The District is facing significant change and uncertainty regarding the Legislative and Regulatory environment at local, State, and Federal levels. Significant public outreach was conducted around the new Martis Valley Groundwater Management Plan (GMP)/model and the collaborative effort between the partner agencies (Placer County Water Agency, Northstar CSD, and TDPUD). Over the last several years, the District has actively participated in the implementation of the Truckee River Operating Agreement (TROA), the US Bureau of Reclamations Truckee River Basin Study, and more recently California’s Sustainable Groundwater Management Act of 2014 (SGMA). All of these laws, regulations, or studies could have significant impact on the District’s water utility and our customers. As part of the department integration explained above, these increased legislative and regulatory demands are budgeted within the General Manager department for the FY18 and FY19 budget cycle as a core focus for the Public Information and Strategic Affairs Manager. 3535 Outdoor irrigation remains the biggest conservation target going forward. The District’s presence in the community, enhanced communications, and customer engagement opportunities as described before will also benefit water conservation efforts. These budgets also reflect early signs of saturation on some of our programs and the need to shift to fund mainline replacement projects. 3636 BUDGET PRIOR 12 MOS BUDGET $ BUDGET % BUDGET BUDGET $ BUDGET % BUDGET CONSERVATION FY17 ENDING 4.2017 FY18 CHANGE CHANGE FY19 CHANGE CHANGE Water Conservation $164,777 $104,984 $103,139 (61,638) -37% $111,387 8,247 8% Admin & General Salaries 18,106 3,797 2,096 (16,010) -88% 2,177 81 4% Office Supplies & Expenses 5,520 1,924 3,854 (1,665) -30% 3,970 116 3% General Advertising 315 16,793 284 (31) -10% 293 9 3% Misc General Expense 2,627 1,079 1,118 (1,509) -57% 1,151 34 3% TOTAL $191,344 $128,577 $110,492 ($80,852)-42%$118,978 $8,486 8% This account includes TDPUD marketing and media activities. This account includes support of community activities such as sponsorship of the Truckee Home Show, Chamber activities, etc. WATER EXPENDITURE DETAIL This account includes the administrative salaries to perform various administrative projects. This account includes office supplies, dues, memberships and meeting and training expenses. This account includes water conservation & efficiency programs. 3737 WATER OPERATIONS The main objective for Water Utility Operations and Maintenance is to provide an adequate, reliable, and high quality water supply and distribution system to meet current and future needs. The objective will be accomplished through the implementation of the current Water Master Plan, including the operation of critical facilities to supply current and future water demands, and by providing effective and efficient infrastructure maintenance and replacement programs. The Water Department is organized into three operational groups: 1) Distribution system operations, maintenance and repairs; 2) Facilities operation, maintenance and repair, including water supply and quality; and 3) System engineering and planning. The FY18 and FY19 budget includes staffing of a Water Utility Manager (also serving as General Manager), a System Engineer, a Superintendent, a Senior Water Quality and Testing Inspector, an Operations Foreman, an Operations Leadman, Operations Service Technician, a Distribution Foreman, a Distribution Leadman, and 6.5 Distribution Service Technicians in FY18 and 6.0 Distribution Service Technicians in FY19 due to attrition for planned retirements. The Water Department’s operational, distribution, and engineering staff are licensed by the California State Water Resources Control Board to operate and maintain the District’s public water system. This requires staff to participate regularly in continuing education and training to maintain water system operator certifications. Staff is also trained in water utility safety procedures and OSHA standards on an annual basis. This training ensures the workforce is qualified and productive, and it provides safe work conditions and procedures that encourage employee retention, growth, and productivity. The main challenges for the Water Utility Operations group in FY18 and FY19 will be the continued progress toward completing the District’s Water SCADA replacement project, the water meter installation program, and reduction of annual unaccounted for water. The department will continue to upgrade aging and undersized water distribution mains through the Capital Pipeline Replacement Projects and pursue the development of an additional water supply, both of which are multi-year programs. 3838 WATER BUDGET PRIOR 12 MOS BUDGET $ BUDGET % BUDGET BUDGET $ BUDGET % BUDGET OPERATIONS FY17 ENDING 4.2017 FY18 CHANGE CHANGE FY19 CHANGE CHANGE Operations Supervision & Engineering $252,080 $260,906 $267,009 $14,929 6% $332,759 $65,750 25% Facilities Operations 761,197 920,439 903,152 141,955 19% 844,927 (58,224) -6% Power Supply 1,215,972 1,178,848 1,208,459 (7,513) -1% 1,244,781 36,322 3% This account includes the cost of electrical power for the operation of the wells and pump stations. Distribution Operations/PM 649,930 662,917 649,286 (644) 0% 670,772 21,486 3% This account includes the labor and materials to operate the water distribution system. Misc General Operations/PM 335,347 287,421 325,967 (9,380) -3% 351,001 25,034 8% Meters/Service Operation 129,124 131,642 148,412 19,288 15% 160,258 11,845 8% Maintenance of Operations Sup & Engineering 123,550 113,058 127,526 3,976 3% 132,395 4,870 4% Used by water manager, superintendent and engineer for supervision, engineering and management of District water system. Maintenance of Sources 715,698 651,782 745,500 29,802 4% 744,284 (1,216) 0% This account includes the maintenance and repair of pumps, motors, electrical control equipment and building repair. Maintenance of Distribution Lines 408,473 336,629 411,939 3,466 1% 401,856 (10,083) -2% This account includes the maintenance and repair of distribution line leaks, broken fire hydrants, etc. Injuries & Damages 95,944 92,381 84,121 (11,823) -12% 80,091 (4,029) -5% This account includes labor for safety meetings, equipment and training expenses. Maintenance of District Office Building (Div 1) 495,753 482,582 498,109 2,356 0% 515,352 17,243 3% TOTAL $5,183,068 $5,118,605 $5,369,480 186,412 4%$5,478,478 $108,998 2% This account is utilized by the water manager, superintendent and engineer for supervision, engineering and management of District water system. This account includes the operation of wells, pump stations, water treatment, water quality, DHS reports and fees and water quality reports. It also includes snow removal and related employee training. This account includes a variety of items such as environmental compliance, GIS mapping of the water system, SCADA repairs and maintenance, cell phones, pagers, computer hardware and software, clothing allowance, DMV physicals, meals, uniforms, land fill charges, meeting expenses, advertising and testing for new employees, training, and Underground Service Alert marking of utilities and associated fees and costs. WATER EXPENDITURE DETAIL 3939 INFORMATION TECHNOLOGY (IT) (Water Budget) The Information Technology (IT) Department is headed by the IT/IS/GIS Operations Manager and also includes the positions IT/GIS Analyst, IT/SCADA Engineer,and the Network & Systems Administrator position, responsible for network, storage and personal devices. Internal IT staff helps reduce outside contractor costs for the District’s IT needs, increase IT knowledge of systems security, and provide additional accountability and redundancy. Information Technology is to implement technology strategies that optimize the operations of the District by providing tools that enable the District to operate faster, better, and more cost efficiently, while providing secure access to critical control, mapping, and information systems. Information Technology’s aim is to provide timely, relevant, and accurate information, when and where it is needed, to support sound decisions that improve the quality, efficiency, cost, safety, and environmental footprint of the products and services the District delivers and uses. To achieve the goals and implement the strategies in the IT Master Plan, utilizing ten guiding principles below focusing on leadership and excellence through quality of service, responsiveness, innovation, professionalism, and teamwork. These principles require commitment not only from the District’s IT professionals, but from all District employees. 1. Consult and advise department heads to drive IT initiatives according to business needs, goals, and objectives, and developing a sound business case before making any new investment. 2. View IT from the perspective of the entire District and not from the perspective of individual departments. 3. Acquire, manage, and use technology resources economically and efficiently through standardized information technology selection and implementation processes. 4. Securely hold and manage technology assets to protect private information. 5. Develop mechanisms and processes to share information easily within the organization and with customers and partners. 6. Understand that availability and access to technology is a given, and design and build systems accordingly. 7. Aggregate, where feasible, to reduce duplication, and employ information technology that is flexible and interoperable to respond quickly and efficiently to changing business needs. 8. Devise strategies to leverage investments in the District’s existing technology. 10. Train the workforce in the skills needed to effectively use IT systems and the information they contain. 4040 BUDGET PRIOR 12 MOS BUDGET $ BUDGET % BUDGET BUDGET $ BUDGET % BUDGET INFORMATION TECHNOLOGY (IT) FY17 ENDING 4.2017 FY18 CHANGE CHANGE FY19 CHANGE CHANGE Engineering & SCADA Operations $82,997 $129,465 $93,732 $10,735 13% $97,032 $3,301 4% GIS/Engineering Operations 85,198 81,189 87,691 2,493 3% 93,281 5,590 6% Meter Reading 14,958 11,254 14,275 (683) -5% 14,871 596 4% Customer Records 101,500 95,743 108,330 6,830 7% 111,677 3,347 3% Administrative & General IT Ops 238,187 245,755 239,523 1,336 1% 260,994 21,471 9% Office Supplies & Expenses 19,980 22,370 19,975 (5) 0% 20,574 599 3% Outside Services Employed 21,780 0 27,000 5,220 24% 27,810 810 3% This account is for outside professional services contracted to maintain hardware, software and data. Safety 3,304 4,057 1,371 (1,933) -59% 1,423 52 4% This account includes department labor for safety meetings, safety equipment and training expenses. TOTAL $567,904 $589,833 $591,896 $23,992 4%$627,662 $35,766 6% This account includes office supplies, dues, memberships, meeting and training expenses. This account is for the maintenance of software and data that supports Customer Information and Customers. WATER EXPENDITURE DETAIL This account is for the operational use of SCADA, Outage Management and Engineering support. This account is for the maintenance of software and data that supports engineering and SCADA. This account is for the maintenance of software and data that supports meter technology and AMI. This account is for the maintenance of hardware and software infrastructure that supports data transport, storage and security. 4141 PART IV THE FY18 & FY19 CAPITAL IMPROVEMENT PLAN ELECTRIC UTILITY 4242 SOURCE OF FUNDS SOURCE OF FUNDS BUDGET FY18 BUDGET FY19 Operations (OP) OP 3,603,406$ 3,621,224$ Customer Contributions (CC) CC 739,918 770,668 Capital Reserve (CR) CR 2,065,253 1,205,775 Vehicle Reserve (VR) VR 422,346 0 Total Source of Funds $6,830,922 $5,597,666 USE OF FUNDS ELECTRIC OPERATIONS: SOURCE OF FUNDS BUDGET FY18 BUDGET FY19 New Services - BWO CC 33,179$ 34,398$ Commercial Services - BWO CC 20,063 20,944 Meter Test & Purchase - BWO CC 80,600 83,176 Purchase & Ins. Transformers - BWO CC 71,607 74,089 Development Agreements CC 494,262 515,832 Flat Fee Construction - BWO CC 25,517 26,946 Secondary Poles & Conductors - BWO CC 6,446 6,716 Conduit & Boxes - BWO CC 8,243 8,567 Line Extension & Upgrades OP 304,962 318,207 Pole Replacements OP 318,161 308,567 Various District Projects OP 163,024 170,266 Electric Master Plan Projects OP 551,150 615,733 Reclosers & Regs - Field Scada OP 97,157 100,627 Distribution Repl & Improvement OP 437,182 467,052 Meter Replacement Program (AMI) CR 2,065,253 1,205,775 Vehicles VR 422,346 0 Subtotal $5,099,153 $3,956,894 ELECTRIC UTILITY CAPITAL PLAN 4343 ELECTRIC UTILITY CAPITAL PLAN BUILDING MAINTENANCE: SOURCE OF FUNDS BUDGET FY18 BUDGET FY19 Mechanics Bay Door/Lift OP 160,000$ 200,000$ Update Lobby & Board Room OP 1,212,425 0 HQ Window Replacement OP 0 125,000 Asphalt HQ Complex OP 0 200,000 Paint the Exterior of the HQ OP 0 80,000 Subtotal $1,372,425 $605,000 INFORMATION TECHNOLOGY (IT): SOURCE OF FUNDS BUDGET FY18 BUDGET FY19 Network Infrastructure Improvement OP 208,149$ 244,415$ Various Department IT Projects OP 123,788 124,786 SCADA Reliability OP 27,407 666,571 Subtotal $359,344 $1,035,772 Total Capital Projects & Equipment $6,830,922 $5,597,666 4444 PART IV THE FY18 & FY19 CAPITAL IMPROVEMENT PLAN WATER UTILITY 4545 SOURCE OF FUNDS SOURCE OF FUNDS BUDGET FY18 BUDGET FY19 Operations (OP) OP 2,291,626$ 2,560,205$ Vehicle Reserve Fund (VR) VR - 429,838 Meter Reserve (MR) MR/OP 303,681 150,000 Operating Reserve Fund (OR) OR - - Total Source of Funds $2,595,308 $3,140,043 USE OF FUNDS SOURCE OF FUNDS BUDGET FY18 BUDGET FY19 WATER OPERATIONS: Martis Woods Pump Station OP -$ 188,093$ Meter Installation MR/OP 303,681 200,000 Water Main Replacement OP 886,200 888,174 Water Tank Painting OP 93,686 72,181 Sanders Well Remodel OP - 150,000 Soma Sierra Booster Generator OP 88,029 - Donner Trails Booster Generator OP 88,029 - Water Production Meter Project OP 58,477 64,832 Meter Replacement OP 81,391 80,000 Vehicles VR - 429,838 Subtotal $1,599,493 $2,073,118 INFORMATION TECHNOLOGY (IT): Water SCADA Replacement OP 663,877 697,724 Network Infrastructure Improvements OP 208,149 244,415 Various IT Projects OP 123,788 124,786 $995,814 $1,066,925 Total Capital Projects & Equipment $2,595,308 $3,140,043 WATER CAPITAL PLAN 4646 PART V THE FY18 & FY19 APPENDICES 4747 2018 APPENDIX 1 INTERDEPARTMENTAL RENT DISTRICT HEADQUARTERS: Building operation/PM/repair 497,886 Depreciation of jointly used assets 551,248 TOTAL COSTS $1,049,134 The Electric Utility owns the district headquarters. The Water Utility pays the Electric Utility rent for the use of the District headquarters and jointly used assets. The rent is calculated as 50% of the above costs, which is $524,567 through a monthly rental charge of $43,714. 4848 2019 APPENDIX 1 INTERDEPARTMENTAL RENT DISTRICT HEADQUARTERS: Building operation/PM/repair 513,410 Depreciation of jointly used assets 571,248 TOTAL COSTS $1,084,658 The Electric Utility owns the district headquarters. The Water Utility pays the Electric Utility rent for the use of the District headquarters and jointly used assets. The rent is calculated as 50% of the above costs, which is $542,329 through a monthly rental charge of $45,194. 4949 POSITION BUDGET FY18 BUDGET FY19 ADMINISTRATION General Manager $249,338 $256,818 Public Information & Strategic Affairs Manager $167,082 $172,095 Project Manager 124,684 128,423 Executive Secretary 88,433 91,085 Human Resources & Risk Manager 124,684 128,423 $754,220 $776,845 ADMINISTRATIVE SERVICES Admin Services Manager 171,157 176,292 Finance & Accounting Manager 137,182 148,156 Senior Accountant/Accounting Analyst 118,741 122,304 Accounting/Computer Operations Supervisor 83,013 85,509 Work Order Accounting Supervisor 83,013 85,509 Contract Administrator 83,013 85,509 Work Order Clerk 68,245 70,304 Payroll and Accounts Payable Clerk 68,245 70,304 Buyer/Clerk 83,013 85,509 Wharehouse/Utility Worker 69,950 72,051 Customer Services Manager 99,863 107,852 Customer Billing and CSR Supervisor 77,126 79,435 Billing Clerk 68,245 70,304 Conservation Specialist 68,245 70,304 Administrative/Community Outreach Coordinator 71,677 73,819 Customer Service Representatives (4) 229,521 246,189 Overtime 18,306 19,026 $1,598,554 $1,668,377 CONSERVATION Program Manager, CSR & Conservation 113,085 116,478 $113,085 $116,478 ELECTRIC OPERATIONS Power Supply Engineer/Asst General Manager 218,448 225,002 Electric Superintendent/Project Administrator 162,999 167,889 Electric Superintendent 162,999 167,889 Electric System Engineer 171,149 176,282 Electric Engineers (3) 363,176 385,360 Foreman, Power Services (2) 239,308 246,480 Foreman, Service Crew (1) 119,654 123,240 Foreman, Electricians(1) 119,654 123,240 APPENDIX 2 BUDGETED POSITIONS BY DEPARTMENT 5050 POSITION BUDGET FY18 BUDGET FY19 APPENDIX 2 BUDGETED POSITIONS BY DEPARTMENT ELECTRIC OPERATIONS (continued) Electrician/Meter Technician (3) 314,009 333,736 Substation Lineman/Inspector 119,654 123,240 Lead Lineman 113,955 117,374 Journeyman Linemen (6) 667,405 687,398 Apprentice Linemen (2) 198,411 213,554 Standby/Overtime 194,477 202,620 $3,165,300 $3,293,305 IT/GIS IT/GIS Operations Manager 151,545 156,092 IT/SCADA Engineer 124,684 128,423 GIS Coordinator 107,484 116,083 Network & System Administrator 118,498 122,052 $502,210 $522,650 WATER OPERATIONS Water System Engineer 175,436 180,698 Water Superintendent 137,463 141,588 Water Quality Inspector 108,534 111,779 Water Foremen (2) 217,069 223,558 Water Leadmen (2) 192,192 197,974 Water Service Technicians - (6.5) in FY18 & (6) in FY19 580,278 551,741 Water Service Technicians - in Training (2) FY18, (1) FY19 154,253 83,408 Facilites Maintenance/Relief Utility Worker 73,464 75,670 Mechanic 100,880 103,917 Standby/Overtime 153,758 133,626 $1,893,326 $1,803,960 TOTAL $8,026,696 $8,181,614 5151 2018 APPENDIX 3 LABOR OVERHEAD VALUE OF BENEFITS Medical /Dental insurance $2,181,870 Vision insurance 61,800 Long term disability 33,000 Life insurance 54,569 Longevity 20,470 FICA 499,143 Fed Med 116,735 Worker's compensation insurance 211,602 Pension 1,728,298 Other Post Employment Benefits 100,000 Value of non-productive labor 1,142,634 (vacation, sick leave, holiday) TOTAL VALUE OF BENEFITS $6,150,121 PRODUCTIVE LABOR Recommended labor (Appendix 2) $8,026,696 Less value of non-productive labor (1,142,634) TOTAL PRODUCTIVE LABOR $6,884,062 PAYROLL OVERHEAD 89.34% (Value of benefits/productive labor) 5252 2019 APPENDIX 3 LABOR OVERHEAD VALUE OF BENEFITS Medical /Dental insurance $2,216,917 Vision insurance 63,654 Long term disability 33,716 Life insurance 57,837 Longevity 21,280 FICA 508,748 Fed Med 118,981 Worker's compensation insurance 211,972 Pension 1,857,356 Other Post Employment Benefits 103,000 Value of non-productive labor 1,168,419 (vacation, sick leave, holiday) TOTAL VALUE OF BENEFITS $6,361,881 PRODUCTIVE LABOR Recommended labor (Appendix 2) $8,181,614 Less value of non-productive labor (1,168,419) TOTAL PRODUCTIVE LABOR $7,013,195 PAYROLL OVERHEAD 90.71% (Value of benefits/productive labor) 5353 2018 APPENDIX 4 TRANSPORTATION OVERHEAD This appendix assumes that the cost of operating, maintaining and replacing District vehicles and equipment will be recognized as an overhead charged against direct labor that uses the vehicles. TRANSPORTATION & EQUIPMENT EXPENSE Vehicle operation, repair, fuels & misc expenses $656,050 Insurance 18,941 Replacement (depreciation expense) 314,393 TOTAL TRANSPORTATION EXPENSE $989,384 DIRECT LABOR HOURS General Manager 4,571 Administrative Services 705 Conservation 74 Electric Operations 39,752 Water Operations 34,981 Power Supply 6,103 TOTAL DIRECT LABOR HOURS 86,186 TRANSPORTATION/EQUIPMENT OVERHEAD PER HOUR COST ($989,384 DIVIDED BY 86,186)$11.48 5454 2019 APPENDIX 4 TRANSPORTATION OVERHEAD This appendix assumes that the cost of operating, maintaining and replacing District vehicles and equipment will be recognized as an overhead charged against direct labor that uses the vehicles. TRANSPORTATION & EQUIPMENT EXPENSE Vehicle operation, repair, fuels & misc expenses $685,030 Insurance 19,509 Replacement (depreciation expense) 323,825 TOTAL TRANSPORTATION EXPENSE $1,028,364 DIRECT LABOR HOURS General Manager 4,571 Administrative Services 1,043 Conservation 74 Electric Operations 38,687 Water Operations 35,023 Power Supply 6,314 TOTAL DIRECT LABOR HOURS 85,712 TRANSPORTATION/EQUIPMENT OVERHEAD PER HOUR COST (1,028,364 DIVIDED BY 85,712)$12.00 5555 2018 APPENDIX 5 ADMINISTRATIVE OVERHEAD COMMON SUPPLY COSTS: Purchasing/Warehousing of Common Supplies Labor $138,653 Accounts Payable 29,163 Overhead: Labor 123,262 Administrative 6,947 298,025 Warehousing Operating Costs Utilities & Building Maintenance 29,158 Miscellaneous (insurance) 5,526 Subtotal 34,684 TOTAL PURCHASING/WAREHOUSING/COMMON SUPPLIES $332,709 TOTAL PRODUCTIVE LABOR $6,884,062 ADMINISTRATIVE OVERHEAD 4.83% 5656 2019 APPENDIX 5 ADMINISTRATIVE OVERHEAD COMMON SUPPLY COSTS: Purchasing/Warehousing of Common Supplies Labor $142,819 Accounts Payable 30,038 Overhead: Labor 129,037 Administrative 6,955 308,850 Warehousing Operating Costs Utilities & Building Maintenance 30,063 Miscellaneous (insurance) 5,692 Subtotal 35,755 TOTAL PURCHASING/WAREHOUSING/COMMON SUPPLIES $344,605 TOTAL PRODUCTIVE LABOR $7,013,195 ADMINISTRATIVE OVERHEAD 4.91% 5757 2018 APPENDIX 6 CONSTRUCTION OVERHEAD General direction and general construction costs from budget: Electric Operations $64,754 Water Operations 52,521 Total $117,275 Determine capitalized labor as a percent of total labor: Capitalized Labor = $1,354,672 = 29.05% Total Electric & Water Labor $4,662,687 Determine construction overhead to be capitalized: Total General direction & construction costs $117,275 % of labor to be capitalized 29.05% General direction & construction costs to capitalize $34,073 Construction accounting costs to capitalize 179,853 $213,925 Calculate construction overhead to be applied to capital improvements: Capital Overhead = $213,925 = 15.79% Capital Labor $1,354,672 CONSTRUCTION OVERHEAD = 15.79% 5858 2019 APPENDIX 6 CONSTRUCTION OVERHEAD General direction and general construction costs from budget: Electric Operations $66,927 Water Operations 54,332 Total $121,259 Determine capitalized labor as a percent of total labor: Capitalized Labor = $1,261,445 = 27.06% Total Electric & Water Labor $4,660,922 Determine construction overhead to be capitalized: Total General direction & construction costs $121,259 % of labor to be capitalized 27.06% General direction & construction costs to capitalize $32,818 Construction accounting costs to capitalize 186,556 $219,374 Calculate construction overhead to be applied to capital improvements: Capital Overhead = $219,374 = 17.39% Capital Labor $1,261,445 5959 APPENDIX 7 ELECTRIC DEBT SCHEDULE Principal and Interest Payments Refinanced Pension Liability YEAR TOTAL 2018 965,863 965,863 2019 1,000,176 1,000,176 2020 1,035,094 1,035,094 2021 1,071,555 1,071,555 2022 545,657 545,657 4,618,344 4,618,344 Loan Descriptions : In 2011, an existing pension liability was refinanced saving the District more than $1 million over the term. Debt Payments: Funded by electric and water rates. 6060 Pipeline Pipeline Pipeline DWR-SRF DWR COP COP COP DONNER LAKE PROP 55 YEAR Rates FF Assmt Assmt Rates TOTAL 2018 1,263,987 356,284 96,801 800,852 306,481 2,824,404 2019 1,265,069 355,324 100,207 800,852 306,481 2,827,933 2020 1,265,881 357,617 97,973 800,852 306,481 2,828,804 2021 1,252,412 356,179 96,216 800,852 153,241 2,658,899 2022 576,869 358,008 99,060 800,852 1,834,790 2023 577,228 358,672 97,837 800,852 1,834,590 2024 573,008 359,233 100,297 800,852 1,833,390 2025 576,529 360,884 97,925 800,852 1,836,190 2026 573,196 359,005 99,736 1,031,938 2027 575,581 359,806 97,150 1,032,538 2028 574,322 358,474 99,142 1,031,938 2029 570,555 360,101 100,444 1,031,100 2030 575,893 359,147 97,360 1,032,400 2031 574,705 359,524 98,421 1,032,650 2032 573,333 357,313 100,104 1,030,750 2033 575,711 359,424 101,490 1,036,625 2034 574,484 359,309 97,207 1,031,000 2035 306,800 306,800 12,518,763 6,401,107 1,677,368 6,406,816 1,072,683 28,076,736 Loan Descriptions : Pipeline COP - Water system improvements and Donner Lake financing DWR/SRF - Replacement of Donner Lake Water System DWR/Prop 55 - Water system improvement projects Debt Payments: The Water debt payments are funded by development (FF), current customers (rates) and special assessments (assmt). The method of payment for the water debt is listed in the column headings. APPENDIX 8 WATER DEBT SCHEDULE Principal and Interest Payments 6161 UNIT # DESCRIPTION DEPARTMENT AGE REPLACEMENT 350 02 GMC 3500 4WD w/Service Body Electric 15 2018 204 06 Chevy Silverado 3500 DSL Electric 11 2018 211 99 Int'l Double Bucket Truck 4WD Electric 18 2018 369 05 Freight liner/ Mudd Dog Water 12 2019 105 07 Chevy Trail Blazer Administration 10 2020 200 06 Chevy Silverado Electric 11 2020 228 08 GMC 2500HD Electric 9 2020 216 07 Int'l SC-45 Bucket Truck 4WD Electric 10 2020 503 06 Chevy Silverado 3500 Support Services 11 2020 343 08 Chevy Silverado 3500 Water 9 2020 373 98 Dump Trailer Water 19 2020 206 10 Chrvy Silverado 2500 HD Electric 7 2021 201 08 GMC 3500 HD Electric 9 2021 580 01 Trackless Snowblower Support Services 16 2021 323 11 Ford F-550 Water 6 2021 324 11 Ford F-550 Water 6 2021 325 11 Ford F-550 Water 6 2021 301 06 Chevy Silverado 3500 Water 11 2021 378 89 Backhoe Transport Trailer Water 28 2021 136 08 Chevy Colorado Electric 9 2022 501 07 Chevy Silverado 1500 Support Services 10 2022 106 13 Ford Escape Administration 4 2023 207 13 GMC Sierra 2500HD Electric 4 2023 281 93 Fleming Spool Trailer Electric 24 2023 295 08 John Deer 35D Electric 9 2023 314 08 John Deer 410 J Water 9 2023 306 13 GMC Sierra 2500hd Water 4 2023 307 13 GMC Sierra 2500hd Water 4 2023 123 14 Chevy Van Administration 3 2024 107 14 Jeep Cherokee Administration 3 2024 288 Underground wire puller/tugger Electric 13 2024 289 SnowCat Electric 13 2024 108 15 Jeep Cherokee Administration 2 2025 109 15 Jeep Cherokee Administration 2 2025 110 15 Jeep Cherokee Administration 2 2025 APPENDIX 9 VEHICLE REPLACEMENT SCHEDULE 6262 UNIT # DESCRIPTION DEPARTMENT AGE REPLACEMENT APPENDIX 9 VEHICLE REPLACEMENT SCHEDULE 111 15 Jeep Cherokee Administration 2 2025 320 10 International Dump Truck Water 7 2025 205 06 Chevy Silverado 3500 Electric 11 2026 210 11 International/ Altec 3050A Electric 6 2026 326 16 Ford F-550 Water 1 2026 202 06 Chevy Silverado 1500 Electric 11 2027 203 06 Chevy Silverado 2500 Electric 11 2027 18 Chevy Silverado 1500 Electric 1 2027 304 07 Chevy Silverado 1500 Water 10 2027 305 07 Chevy Silverado 1500 Water 10 2027 303 07 Chevy Silverado 1500 Water 10 2027 399 12 New Holland Water 5 2027 283 72 Small Spool Trailer Electric 45 2028 330 13 International Dump Truck Water 4 2028 291 Dump Trailer Electric 13 2029 290 Trailer,Snowcat Electric 13 2029 285 14 Overhead Wire Puller Electric 3 2029 223 14 Int'l 7500 Bucket Trucke 4WD Electric 3 2029 389 14 EH Wachs Trailer Water 3 2029 360 Caterpillar 926M Water 2 2030 315 15 John Deere 410 L Water 2 2030 219 Ford Mini Bucket F550 Electric 1 2031 292 Spool Trailer Electric 11 2031 395 Compact Excavator Caterpillar 305.5E2 Water 1 2031 225 International /Navistar 7400 Electric 1 2032 560 Heavy Duty Fork Lift Electric 39 2032 293 06 Pole Trailer Electric 11 2032 379 06 Halmark Leak Trailer Water 11 2032 296 Trailer,Mini X Electric 9 2033 Cargo Trailer Water 1 2036 298 2013 Hallmark Trailer Electric 4 2037 6363