Loading...
HomeMy WebLinkAbout10-1, Attachment 2014 & 2015 Budget SummaryAttachment 1 TRUCKEE DONNER PUBLIC UTITLITY DISTRICT FY14 & FY15 BUDGET November 6, 2013 TABLE OF CONTENTS Executive Summary Attachment 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 19 Information Technology (IT) 21 Part 111 — Operating, Repair and Maintenance Plan — Water Utility 23 Water Operations Introduction 24 Water Operations Revenue Statement 25 Summary of Water Revenues and Expenses 26 Water Expenditure Detail: Board of Directors 27 General Management 29 Administrative Services 31 Public Information/Conservation 33 Water Operations 35 Information Technology (IT) 37 Attachment 1 TABLE OF CONTENTS Continued: Part IV - Capital Improvement Plan - Electric and Water Utilities 39 Part V -Appendices: 44 Appendix 1 Interdepartmental Rent 45 Appendix 2 Budgeted Positions by Department 47 Appendix 3 Labor Overhead 49 Appendix 4 Transportation Overhead 51 Appendix 5 Administrative Overhead 53 Appendix 6 Construction Overhead 55 Appendix 7 Electric Debt Schedule 57 Appendix 8 Water Debt Schedule 58 Appendix 9 Vehicle Replacement Schedule 59 Attachment 1 EXECUTIVE SUMMARY Truckee Donner Public Utility District (District) provides electric power to 13,200 customers and water to 12,500 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. This District budget for years ending December 31, 2014 and 2015 (FY14 and FY15) reflects past performance, current requirements, and future opportunities and risks. The budgets for both the District's Electric Utility and Water Utility are balanced. 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. There is no electric rate increase proposed for FY14 and FY15. An annual 3% water rate increase is proposed for FY14 and FY15. The Electric Utility continues to transition from traditional electric resources to renewable generation. The Water Utility is improving infrastructure while maximizing the benefits of investments in water meters. 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 budgets for the electric and water systems Part V Appendices 1 Attachment 1 The following table is a comparison of the FY14 and FY15 Budget to the FY13 Budget: FY14 vs FY13 FY15 vs FY14 FY13 Budget FY14 Budget FY15 Budget % Variance % Variance Electric Water Total Electric Water Total Electric Water Total Elec Water Total Elec Water Total Revenue $ 23,240 $10,910 $ 34,150 $ 23,330 $10,800 $ 34,130 $ 23,560 $11,213 $ 34,773 0% -1% 0% 1% 4% 2% Expenses 19,990 7,710 27,700 20,390 7,590 27,980 20,910 7,850 28,760 2% -2% 1% 3% 3% 3% Income $ 3,250 $ 3,200 $ 6,450 $ 2,940 $ 3,210 $ 6,150 $ 2,650 $ 3,363 $ 6,013 Plus: From Funds $ 1,150 $ 3,300 $ 4,450 $ 2,380 $ 2,850 $ 5,230 $ 2,000 $ 2,770 $ 4,770 107% -14% 18% -16% -3% -9% Less: Debt Service 890 3,320 4,210 860 3,320 4,180 890 3,330 4,220 -3% 0% -1% 3% 0% 1% Capital Projects 2,890 1,720 4,610 3,540 2,590 6,130 2,850 2,653 5,503 22% 51% 33% -19% 2% -10% To Reserves 620 1,460 2,080 920 150 1,070 910 150 1,060 48% -90% -49% -1% 0% -1% Surplus (Deficit) $ - $ - $ - $ - $ - $ - $ - $ - $ - Budget Assumptions The key assumptions used in the FY14 and FY15 Budget were: • No electric rate increase in FY14 and FY15 • 3% annual water rate increase in FY14 and FY15 • Annual inflation is expected to be 3% • Estimated labor rate increase of 2% in FY14 and 3% in FY15 • No new debt • $5 monthly water meter surcharge (7.5%) ends December 31St • One IT employee added in FY14 • One Work Order employee restored in FY15 2 Attachment 1 Overall Budget The Electric budget is balanced with revenue collections and Cap & Trade (A1332) proceeds. The Water budget is balanced with revenue collections and the use of reserve funds. The Electric revenue is projected to be flat based on the most recent twelve month actual revenue and the projected revenue collected for the AT&T Joint Pole Purchase & Sales Agreement. The Water customer revenue is projected to have a 3% increase in FY14 & FY15 due to the rate increase and a 1 % increase in demand. Overall the FY14 water operating revenue is expected to be 1 % less than FY13 due to the end of the $5 meter surcharge. Electric expenses are budgeted to increase by 2% to 3% annually, which is less than expected inflation. The Water expenses decreased 2% in FY14 due to reduced energy costs for pumping due to increased efficiencies and pipeline replacement along withsome operational labor shifting to capital projects. To provide better management of IT resources the Power Supply/GIS department will be changed to the IT/GIS department. All District IT costs and responsibilities will be consolidated into one department. All costs associated to Power Supply will be accounted for in Electric operations. Electric Utility The utility continues to focus on system maintenance, tree trimming and a high level of RPS. The capital projects include Master Plan, SCADA reliability improvement, Donner Lake Substation and new construction anticipated to increase compared to recent years. Water Utility The utility continues to focus on pipeline replacement, donner view replacement, pump station replacement and water meter installations. 3 Attachment 1 p�i' t�rv��' � ��9 } ! THE FY14 & FY15 Attachment 1 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. 5 Attachment 1 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. Attachment 1 R " J.. ' it . > � u To ELECTRIC UTILITY Attachment 1 ELECTRIC OPERATING, MAINTENANCE & REPAIR. PLAN INTRODUCTION The electric budget projects total operating expenditures and transfers to reserve funds for FY14 and FY15 in the amounts of $22,166,246 and $22,709,357 respectively. Capital expenditures are budgeted for FY14 and FY15 in the amounts of $3,543,897 and $2,851,488 respectively. Total .operating revenues and transfers from various reserve funds total $25,710,143 and $25,560,846. Of the $3,543,897 for FY14 capital expenditures, $3,065,081 is paid by operating funds. Of the $2,851,488 for FY15 capital expenditures, $2,783,476 is paid by operating funds. A new revenue stream will come from the selling of Cap -and -Trade allowances in the amounts of $862,562 and $860,000 for FY14 and FY15.. The FY14 and FY15 budget does not propose an electric rate increase and achieves an overall balanced budget. During FY14 and FY15, the Western hydro power costs are forecasted to stabilize due to improving hydrologic conditions. The District continues along the path of a balanced, diversified power supply, including increased renewable energy purchases. Additionally, building strong cash position is important to avoid customer rate spikes. In FY14 and FY15 we continue to commit resources to improving reliability in our service area and addressing back- logged maintenance projects. The final payment for the 2003 Purchased Power Buyout COP did occur in FY12. No new debt will be acquired. ELECTRIC OPERATIONS REVENUE STATEMENT Attachment 1 OPERATING REVENUE BUDGET 2013 PRIOR 12 MOS ENDING 8 2013 Residential Sales $12,308,431 $11,903,592 Commercial Sales 8,973,815 8,997,678 Interdepartmental Sales 1,193,362 1,263,800 Miscellaneous Operating Revenue 319,031 220,630 Miscellaneous Rents 30,000 25,000 Standby Revenue 25,480 25,160 AT&T Purchase & Sales Agreement Joint Pole 0 0 Interdepartmental Rent 370,070 366,172 TOTAL OPERATING REVENUE $23,220,189 $22,802,032 Interest Income 18,000 14,533 Transfer in from Restricted Funds - Facilites Fees 100,000 46,830 Transfer in from Vehicle Reserve Fund 43,820 31,882 Transfer in from overhead to cover CalPers sidefund debt 832,775 832,775 Transfer in from AB32 Reserve Fund 0 0 Transfer in from CA Solar Initiative 177,400 177,400 BUDGET CHANGE BUDGET2015 2014 CHANGE CHANGE $12,008,012 ($300,419) -2% $12,128,092 $120,080 9,107,216 133,401 1 % 9,198,288 91,072 1,200, 000 6,638 1510 1,212, 000 12,000 157,400 (161,631) -51 % 158,974 1,574 26,600 (3,400) -11 % 26,600 0 25,490 10 0% 25,490 0 407,778 407,778 - 407,778 0 381,172 11,102 3 % 388,795 7,623 $23,313,668 $93,479 0% $23,546,017 $232,349 14,547 (3,453) -19% 14,692 145 0 (100,000) -100% 0 0 478,816 434,996 993% 68,011 (410,805) 863,150 30,375 4% 894,725 31,575 862,562 862,562 - 860,000 (2,562) 177,400 0 0% 177,400 0 TOTAL ELECTRIC REVENUE & TRANSFERS $24,392 184 $23 905,452 $25,710,143 $1,317 959 5% $25,560,846 ($749 297) 9 SUMMARY OF ELECTRIC REVENUES AND EXPENSES Attachment 1 RECAP REVENUES LESS EXPENSES BUDGET 2013 PRIOR 12 MOS ENDING 5 2013 BUDGET 2014 $BUDGET CHANGE BUDGET CHANGE 20 CHANGE CHANGE ELECTRIC REVENUES & TRANSFERS LESS EXPENSES: $24,392,184 $23,905,452 $25,710,143 $1,317,959 5% $25,560,846 ($149,297) _1% Board of Directors 98,275 91,304 113,066 14,791 15% 126,957 13,891 12% General Management 573,756 569,031 561,167 (12,589) -2% 584,218 23,051 4% Administrative Services 1,336,672 1,299,812 1,298,289 (38,383) -3% 1,365,267 66,977 5% Conservation 1,435,363 1,266,427 1,385,297 (50,066) -3% 1,406,248 20,951 r 2% Electric Operations 3,602,634 3,447,054 3,727,051. 124,417 3% 3,892,378 165,328 4% Power Supply/GIS 551,445 519,242 562,050 10,605 2% 613,273 51,223 9% Purchased Power 11,863,817 11,313,481 12,262,979 399,162 3% 12,414,610 151,631 1% Building Maintenance (managed by WaterOps) 528,922 415,896 477,261 (51,661) -10% 505,193 27,933 6% TOTAL OPERATING EXPENSES $19,990,884 $18,922,247 $20,387,159 $396,275 2% $20,908,144 $520,985 3% Debt Service (Appendix Vlll) 891,704 891,704 863,150 (28,554) -3% 894,725 31,575 4% Transfer to Vehicle Reserve 169,373 169,373 174,454 5,081 3% 179,687 5,233 3% Transfer to Electric Rate Reserve Fund 445,760 445,760 422,305 (23,456) -5% 426,527 4,222 1% Transfer to Electric Capital Fund 0 0 319,178 319,178 - 300,274 (18,904) -6% TOTAL EXPENSES & TRANSFERS 21,497,721 20,429,084 22,166,246 668,525 3% 22,709,357 543,112 2% NET AVAILABLE FOR CAPITAL $2,894,463 $3,476,368 $3,543,897 $649,434 22% $2,851,488 ($692,409) -20% 10 Attachment 1 BOARD OF DIRECTORS (Electric Budget) The Board of Directors consists of five elected members who serve four-year terms. 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 Board's basic responsibility is to represent the customers of the District. The Board establishes policy and goals for the proper governing of the District and grants authority to staff to perform the day-by-day tasks necessary to serve customer needs. The Board reviews the overall District performance by conducting regularly scheduled performance reviews with the General Manager. The policies adopted by the Board represent the values that the District seeks to achieve in providing service to its owner/customers. The Board adopted a Mission Statement and Statement of Objectives and Goals, which were used to form the FY14 and FY15 Budget. Staff has conducted a series of workshops starting on September 4, 2013 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 FY14 and FY15 Budget. In previous years, the Board adopted a public outreach policy. Board meetings are televised and streamed over the Internet. Prior meetings are also available online for viewing through the District's website. There is time set aside within each agenda item for public input. The Board conducts workshops before taking action on significant issues. All of these actions help manage the District in an effective, efficient and fiscally responsible manner. For this budget, a public hearing was scheduled on November 6, 2013. 11 ELECTRIC EXPENDITURE DETAIL Attachment 1 BOARD OF I 820113 PRIOR 12 MO B B DIRECTORS ENDING 5 2013 2014ET CHANGE CHANGE%BUDGET 2015ET CHANGE CHANGE Outside Services Employed $12,500 $5,050 $12,500 $0 0% $12,500 $0 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 0% presented at the board level. Miscellaneous General Expenses 85,775 86,254 100,566 14,791 17% 114,457 13,891 14% 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. TOTAL $98,275 $91,304 $113,066 $14,791 15% $126,957 $13,897 12/ 12 Attachment 1 GENERAL MANAGEMENT (Electric Budget) The District's General Management Department consists of the General Manager, Executive Secretary; Special Projects Administrator, and Human Resources Manager. The General Manager is the administrative head of the District with responsibility for managing the day-by-day affairs of the organization. The Executive Secretary assists the General Manager in various aspects of his duties, especially in arranging for Board meetings and keeping proper custody of the records of the District. She also provides administrative assistance to other members of the District's management and professional staff. 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 Human Resources Manager is responsible for managing employee benefits, workers compensation claims and coverage, ensuring compliance with the International Brotherhood Local 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 the District staff. This includes overall fiscal responsibility, negotiating with the Union, and ensuring that the District is meeting its goals and objectives. The General Manager prepares Board agendas, and makes certain that matters appearing on the agenda are adequately researched and presented to the Directors in a meaningful way. During FY12 and FY13, the General Manager's focus was to expand the purchase of renewable sources of energy for the District, enhance the District's electric and water conservation programs, and investigate and propose a new multi -tiered rate structure for the electric division. All of these goals were achieved. The main District goals for FY14 and FY15 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 to 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 2014 to review all of the General Manager's accomplishments over the past year. The District's safety program meets the District's goal of providing a safe and healthy work environment to all District employees. We now have a safety incentive program, and have ongoing training and seminars for District staff. The fiscal impact of these safety programs is to reduce our workers' compensation insurance cost. 13 ELECTRIC EXPENDITURE DETAIL Attachment 1 GENERAL JBUDGET MANAGEMENT 2013 PRIOR 12 MOS ENDING 5.2013 BUDGET $ BUDGET % BUDGET BUDGET $BUDGET %BUDGET 2014 CHANGE I CHANGE 2015 CHANGE CHANGE Administrative & General - Salaries $332,977 $352,919 $335,537 $2,660 1 % $352,857 $17,321 This account is used to charge general administrative staff time other than safety and board related activities. 5% Office Supplies & Expenses 133,923 130,202 132,929 ($994) -1 % 135,955 $3,026 This account is used to cover cell phone use, computer expenses, dues & memberships including LAFCO and NCPA, industry meetings, office supplies, postage, 2% training, assessment, personnel expenses and safety. Outside Services Employed 42,000 31,429 31,500 ($10,500) -25% 32,000 $500 2% 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. Injuries & Damages 16,500 16,051 21,679 $3,179 17% 22,114 $435 2% This account includes labor for department safety meetings and training and the organization's wellness program. General Advertising Expenses 3,461 2,489 3,950 $489 14% 3,986 $36 This account is used for the cost of publishing ordinances, surplus material, and other legal ad requirements. . 1 % Misc General Expenses 35,994 35,881 35,572 ($422) -1 % 37,305 $1,732 5% 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. TOTAL $566,756 $569,031 $567,167 ($558) -1% $584,218 $23,051 4% 14 Attachment 1 ADMINISTRATIVE SERVICES (Electric Budget) The Administrative Services Department supports both the electric and water utilities and is organized into the following functional areas: customer services; collections; billing; meter reading; accounting; finance; and purchasing. It is staffed by 16 people and lead by the Administrative Services Manager. The currently vacant position of Finance and Accounting Manger will not be filled in FY14 and FY15. A Work Order Specialist position is budgeted to be reinstated in FY15 to process the anticipated growth in new construction. After 2008, the economy was slow to recover, and many customers had difficulty paying bills. Although the economy is finally demonstrating solid signs of improvement, staff will continue to diligently' collect past due amounts from customers, while working with them to structure payment plans and to obtain financial aid from other agencies. The department will continue to utilize technology to increase customer service and accuracy. A new web -based portal, called, "Smart Hub," will enable 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. Staff will take advantage of opportunities to lower costs and improve internal controls and operating procedures for billing, accounting and computer operations. During FY14 and FY15, accounting software, work station computers, servers, and network facilities will be upgraded as they approach the end of their expected usefulness. 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. 15 ELECTRIC EXPENDITURE DETAIL Attachment 1 ADMINISTRATIVE ( BUDGET PRIOR 12 MOS BUDGET $ BUDGET % BUDGET SERVICES 2013 ENDING 5.2013 BUDGET $ BUDGET % BUDGET 2014 CHANGE CHANGE 2015 CHANGE CHANGE Meters/Services Operations Expenses $67,764 $89,488 $89,594 $21,830 32% $94,297 $4,703 This account is used by the meter readers to charge their time to perform meter connects, disconnects and service transfers. 5% Customer Installation Expense 287602 11,054 11,162 (17,440) -61% 11,697 534 This account includes charges for G0165 inspections for the electric department as well as investigations of energy diversion. 5/ Customer Account Operations Expense -Salaries 87,023 85,054 77,742 (9,281) -11 % 80,697 2,955 This account includes the management staff supervision of the customer service and billing functions. 4/ Meter Reading Expense 73,235 62,417 65,791 (7,444) -10% 69,031 3,240 5/ 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. Customer Records & Collections Expense 406,186 424,169 418,943 12,755 3% 440,578 21,635 5% 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. Customer Records&Collections - Meter Readers 39,528 32,679 34,235 (5,293) -13% 36,177 1,942 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. 6/ Provision for Bad Debts 52,273 28,832 23,450 (28,823) -55% 24,154 704 3% This account represents the amount of uncollectable bills for the year. Administrative & Operations General -Salaries 341,975 323,430 339,557 (2,418) -1 % 364,209 24,652 7% 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. Office Supplies & Expenses 77,665 73,127 69,115 (8,550) -11% 71,188 2,073 3/ 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.. Outside Services Employed 30,883 28,039 28,330 ($2,553) -8% 29,180 $850 3% 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. Insurance 127,702 134,286 135,925 8,223 6% 139,445 3,519 3% This account Includes annual insurance premiums for property, liability, umbrella liability, directors & officers liability, difference in conditions, boiler & machinery coverage insurance. Injuries & Damages (Safety) 3,836 7,237 4,445 609 16% 4,615 769 4% safety related equipment. TOTAL $1336 674 $1299 812 $1,298,289 ($38 385) -3% $1,365,267 $66 977 5% 16 Attachment 1 PUBLIC INFORMATION AND CONSERVATION (Electric Budget) The Public Information and Conservation Department is responsible for outreach to the public, providing energy and water conservation services, administration of the District's public benefits and solar photovoltaic (PV) programs, and tracking of State and Federal energy legislation. The department staff consists of a Public Information and Conservation Manager, a Conservation Program Administrator, a Conservation Program Specialist, and a part-time. Conservation Customer Service Representative. The department's capacity was increased in FY13 to staff the large portfolio of energy efficiency and conservation programs and to support the District's increased efforts in communications and outreach. Significant progress has been made developing the District's energy conservation programs with a continued emphasis on return on investment. New and emerging technologies, such as LED lighting and energy controls, will be important for continued cost-effective programs. Key business programs include: Commercial Lighting Rebate; Business Green Partners; and Commercial Refrigeration direct -install. 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'. Pursuant to SB 1, the California Solar Initiative, the District continued to administer its Solar PV Rebate Program forresidential, commercial, and non-profit/government customers. For FY14 and FY15, the department plans to consolidate our many new and existing programs and to focus on the delivery of these benefits to our customers. Current staff is fully utilized supporting the many program, customer interactions, and events in which the District participates. The FY14 and FY15 budgets reflect the increased emphasis on communications and outreach. These budgets also reflect early signs of saturation for some of the District's energy conservation programs and added challenges to maintaining cost-effective programs given the current regulatory and political environment. The Solar PV Rebate Program will continue. The demands on the Public Information Officer continue to grow and, as the State responds to climate change with legislation (AB 32) and new Renewable Portfolio Standards (RPS), so will the District through our partnerships with NCPA, CMUA, and UAMPS. To maintain and enhance the District's public outreach programs, the 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. The Department will continue to build relationships with local and state partners and conduct our business in an open and transparent manner. 17 ELECTRIC EXPENDITURE DETAIL Attachment 1 BUDGET PRIOR 12 MO S BUDGET $ BUDGET % BUDGET BUDGET $ BUDGET % BUDGE CONSERVATION 2013 ENDING 5,2013 L.2014 CHANGE CHANGE I 2015 CHANGE I CHANGE Public Benefits - Conservation $576,572 $476,511 $521,783 ($54,789) -10% $534,790 $13,007 2% The account includes general energy conservation and efficiency programs and wire to water. CA Solar Initiative - SB1 221,541 185,414 219,602 (1,939) -1 % 221,199 1,598 1 % This account includes District solar rebates. Public Benefits - Research & Development 8,111 1,273 6,297 (1,814) -22% 6,508 211 This account includes energy conservation and efficiency R&D activities. 3% Public Benefits - Income-Qualifed 80,606 This account includes income-qualifed programs. 55,543 69,908 (10,696) -13% 71,447 1,538 2% Public Benefits - Renewable Power 182,310 219,286 183,421 1,111 1 % 185,295 1,874 This account includes renewable purchases and programs. 1 % Public Benefits - Rebates 205,235 This account includes energy conservation and efficiency rebates. 178,238 184,964 (20,271) -10% 178,257 (6,707) -4% Public Information 66,200 This account includes the activities of the PIO plus the website and newsletter. 63,021 89,438 23,238 35% 94,564 5,126 6% Admin & General Salaries 45,222 37,611 36,727 (8,495) -19% 38,658 1,932 5% This account includes the administrative salaries to perform various administrative projects. Office Supplies & Expenses 18,029 10,640 14,000 (4,029) 22% 14,420 420 3% This account includes office supplies, dues, memberships and meeting and training expenses. Office Supplies & Expenses - Leg & Reg 3,182 3,524 22,950 19,768 621 % 23,797 648 4% This account is for legislation and regulation tracking labor. Injuries & Damages 0 1,014 858 858 - 902 45 5% This account Includes labor for department safety meetings, equipment and training. General Advertising 25,452 27,586 29,750 4,298 17% 30,643 893 3% This account includes TDPUD marketing and media activities. Misc General Expense 5,303 6,766 5,600 297 6% 5,768 168 3% This account includes support of community activities such as sponsorship of the Truckee Home Show, Chamber activities, etc. TOTAL $1,437,763 $1,266,427 $1,385,297 ($52,466) -4% $1,406,248 $20,951 2% 18 Attachment 1 ELECTRIC OPERATIONS The Electric Operations Department is responsible for operating, maintaining, repairing and expanding the District's electric distribution system. A primary department responsibility is to provide effective and efficient maintenance and replacement programs and provide an effective, efficient and safe operations program. The FY14 and FY15 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, a Lead Inspector, two Electrician /Meter Technicians, three Foremen, a Lead Lineman, a Substation Lineman, six Lineman, two Apprentices and a Contract Administrator. The department provides work conditions and procedures that .encourage employee safety, growth, productivity, and retention. Apprentices are trained both internal and externally. Journeymen are trained to utilize approved rubber gloving practices. Employees are trained on underground practices and materials, as the District transitions to becoming more of an underground utility. During FY13, District growth continued to be sluggish and is forecasted to slowly recover in FY14 and FY15. As the economic downturn continues the department will concentrate efforts on system maintenance, including the SCADA reliability improvement project and the reliability of Donner Lake substation. Right-of-way maintenance to reduce outages will be maintained, and approximately thirty poles have been identified for replacement. Capital improvements will be implemented as identified in the Electric System Master Plan 19 ELECTRIC EXPENDITURE DETAIL Attachment 1 ELECTRIC BUDGET I PRIOR 12 MOS BUDGET $BUDGET %BUDGET BUDGET $BUDGET %BUDGET OPERATIONS 2013 ENDING 5 2013 2014 CHANGE I CHANGE 2015I CHANGE I CHANGE Operations/PM Sup & Engineering $906,681 $934,971 $922,599 $15,918 2% $956,985 $34,386 4% 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. Substation Operations/PM 193,424 134,425 155,858 (37,566) -19% 162,624 6,767 4% This account Includes all work done on, and within, substations including snow removal, maintenance, repairs and associated materials and employee training. Distribution Operations/PM 1,170,887 1,159,207 1,148,015 (22,872) -2% 1,208,625 60,610 5% This account Includes all maintenance work such as mandated programs, pole testing, tree trimming, pole clearing, small tools and employee training. Security/Street Light Operations/PM 9,540 803 761 (8,759) -92% 811 30 4% This account Includes the purchase and installation of street and security lights throughout the District. Meter Operations/PM 32,327 47,429 40,250 7,923 25% 41,799 1,550 4% 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. Customer installation Operations/PM 112,284 177,440 178,551 66,267 59% 185,926 7,376 4% 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. Misc General Operations/PM 376,720 369,547 451,054 74,334 20% 480,767 29,713 7916 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. Maintenance of Station Equipment 25,503 11,903 11,949 (13,554) -53% 12,394 445 4% This account Includes labor and material to maintain the reclosers and regulators within the substations. Maintenance of Distribution Lines 429,415 229,522 435,562 6,147 1 % 458,869 23,307 5% This account primarily includes labor and material material for recloser repair, distribution line repair, damage tree clearing, standby labor and storm damage repair. MaintenaceofSecurity/StreetLights 2,909 10,984 10,213 7,304 251% 10,637 424 4% This account includes labor, materials and supplies (replacement bulbs, photocells and fixtures) for the maintenance and repair of security and street lights. Professional Services 15,000 5,426 3,000 (12,000) -80% 3,090 90 3% This account includes payments to Energy Source and Power Supply consultants. It also includes UAMPS expenditures. Injuries & Damages (Safety) 280,160 239,055 256,207 (23,953) -9% 258,293 2,086 1% This account Includes labor for safety meetings, safety equipment and safety meeting/training expenses. Regulatory Commission Expense 47,784 126,342 108,012 60,228 126% 111,557 3,545 3% This account includes staff labor and legal fees for any FERC activity. TOTAL $3,602,634 $3,447,054 $3,722,051 $119,417 3% $3,892,378 $170,328 5% 20 Attachment 1 INFORMATION TECHNOLOGY (IT) (Electric Budget) The Information Technology (IT) Department is headed by the IT/IS/GIS Operations Manager and also includes the IT/GIS Analyst and IT/SCADA Engineer positions. A !Network & Systems Administrator position has been added to the FY14 budget to: help reduce outside contractor costs for the District's IT needs, increase IT knowledge of systems security, and provide additional accountability and redundancy to existing IT staff. The highest priority for this department is to enable the electric department to operate faster, better and more cost efficiently, while providing secure access to critical control, mapping and information systems. The departments 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. Simply put, the underlying vision needed to accomplish the department's mission is: Turn data into information and information into action. To achieve the goals and implement the strategies in this plan, the ten guiding principles below focus 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, including the management ranks and policy -makers. 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. Foster interdepartmental cooperation in everything we do. 3. View IT from the perspective of the entire district and not from the perspective of individual departments. 4. Acquire, manage, and use technology resources economically and efficiently through standardized information technology selection and implementation processes. 5. Securely hold and manage technology assets to protect private information. 6. Develop mechanisms and processes to share information easily within the organization and with customers and partners. 7. Understand that availability and access to technology is a given, and design and build systems accordingly. 8. Aggregate, where feasible, to reduce duplication, and employ information technology that is flexible and interoperable to respond quickly and efficiently to changing business needs. 9. 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 21 ELECTRIC EXPENDITURE DETAIL Attachment 1 IT BUDGET I PRIOR 12 MOS BUDGET $BUDGET % BUDGET BUDGET $ BUDGET %BUDGET 2013 ENDING 5.2013 2014 CHANGE CHANGE 2015 CHANGE I CHANGE Engineering & SCADA Operations $60,783 $47,165 $89,235 $28,452 47% $109,356 $20,122 23% This account is for the operational use of SCADA, Outage Management and Engineering support. GIS/Engineering Operations 269,337 264,653 123,176 (146,161) -54% 131,690 8,513 This account is for the maintenance of software and data that supports engineering and SCADA. 7% Meter Reading 8,521 11,001 This account is for the maintenance of software and data that supports meter technology and AMI. 13,447 4,926 58% 13652 ' 205 2% Customer Records 49,120 48,645 99,340 50,220 102% 94,696 (4,644) -5% This account is for the maintenance of software and data that supports Customer Information and Customers. Administrative & General IT Ops 33,072 22,827 167,112 154,040 466% 213,005 25,893 14% This account is for the maintenance of hardware and software infrastructure that supports data transport, storage and security. Office Supplies & Expenses 1A2,790 115,023 19,396 (83,394) -81 % 20,506 1,110 6% This account includes office supplies, dues, memberships, meeting and training expenses. Outside, Services Employed 27,230 5,426 29,680 2,450 9% 29,680 0 This account is for outside professional services contracted to maintain hardware, software and data. 0% Safety 5,193 4,502 664 (4,529) -87% 689 25 4% This account includes department labor for safety meetings, safety equipment and training expenses. TOTAL $556 046 $519 242 _ $562,050 $6 004 1 % $613,273 $51 223 9% 22 Attachment 1 1'! 23 Attachment 1 WATER OPERATIONS INTRODUCTION The water budget projects total operating expenditures and transfers to reserve funds for FY14 and FY15 in the amount of $11,055,894 and $11,325,336 respectively. The water budget also forecasts capital expenditures for FY14 and FY15 in the amount of $2,589,285 and $2,652,646 respectively. For capital expenditures, $809,200 and $952,005 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 $13,645,179 for FY14 and $13,977,981 for FY15. The monthly $5 new water meter installation surcharge has concluded as of December 31, 2013 resulting in a 7.5% effective rate reduction. The FY14 and FY15 budget proposes a 3% rate increase for a net decrease of 4.5% and achieves an overall balanced budget. The mechanics and hydraulics of water service is complex in a mountain environment. The District's water supply comes from the Martis Valley 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, 215 miles of pipeline, 36 storage tanks, and 24 pump stations. This complex system is expensive to operate, maintain, repair and replace. It is important that the department control the operating costs to minimize future rate increases. In FY14 and FY15, 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 Managerwill continue as the acting Water Utility Manager. During FY14 and FY15, the department will continue with operations and maintenance programs, system replacement and capital projects, installation of water meters, SCADA replacement and an on -going conservation program. 24 WATER OPERATIONS REVENUE STATEMENT Attachment 1 OPERATING BUDGET PRIOR 12 MOS BUDGET 1 $ BUDGET %BUDGET BUDGET $BUDGET % BUDGET REVENUE 2013 ENDING 8.2013 2014 CHANGE CHANGE 2075 CHANGE CHANGE_ Residential Sales $8,549,479 $8,525,969 $8,912,133 $362,653 4% $9,268,618 $356,485 4% Commercial Sales 1,195,665 1,370,209 1,414,158 218,493 18% $1,470,724 56,566 4% Meter Reserve Surcharge 752,100 748,883 0 (752,100) -100% 0 0 0% Interdepartmental Sales 2,318 2,318 2,378 60 3% 2,450 71 3% Misc. Operating Revenue 157,530 196,858 222,924 65,394 42% 222,924 0 0% Miscellaneous Rents 38,000 36,633 38,000 0, 0% 38,000 0 0% Standby Revenue 161,040 157,440 157,440 (3,600) -2% 157,440 0 0% TOTAL OPERATING REVENUE $10,856,133 $11,038,310 $10,747,033 ($709,100) -1% $17,160,756 413,723 4% Interest Income 52,409 32,333 52,409 0 0% 52,933 524 1 Transfer in from Facilites Fees - Debt - Tank Loan 150,158 150,158 0 (150,158) -100% 0 0 0% Transfer in from Facilities Fees & Reserve - Debt - 2006 COP 358,092 358,092 0 (358,092) -100% 0 0 0% Transfer in from Glenshire billing surcharge -Pipeline loan 166,786 166,786 166,786 0 0% 166,786 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 99,145 99,145 98,016 (1,129) -1 % 96,615 (1,401) -1 Transfer in from Meter Reserve Fund 578,090 492,443 394,659 (183,431) -32% 450,379 55,720 14% Transfer in from Capital Reserve Fund 949,571 949,571 1,337,807 388,236 41 % 1,154,737 (183,070) -14% Transfer in from Vehicle Reserve Fund 197,032 197,032 47,617 (149,415) -76% 95,523 47,906 101% TOTAL WATER REVENUE & TRANSFERS $14,208,268 $14,284,722 $13,645,179 ($563,089) -4% $13,977,981 $332,802 2% 25 SUMMARY OF WATER REVENUES AND EXPENSES Attachment 1 RECAP REVENUES LESS EXPENSES BUDGET 2013 PRIOR 12 MO S ENDING 5.2013 BUDGET 2014 $ BUDGET CHANGE % BUDGET BUDGET $ BUDGET % BUDGET CHANGE 2015 CHANGEI CHANGE WATER REVENUES & TRANSFERS $14,268,268 $14,284,722 $13,645,179 ($563,089) -4% $13,977,981 $332,802 2% LESS EXPENSES Board of Directors 98,275 89,653 113,066 14,791 15% 126,957 $13,891 12% General Management 452,934 448,678 443,378 (9,556) -2% 462,306 $18,928 4% Administrative Services 1,216,637 1,128,529 1,126,254 (90,383) -7% 1,184,377 $58,123 5% Conservation 360,166 268,700 319,644 (40,522) -11% 332,150 $12,506 4% Water Operations 4,776,660 4,964,373 4,648,458 (128,202) -3% 4,741,387 $92,929 2% IT/GIS 432,902 358,333 554,441 121,539 28% 613,292 $58,851 11 Interdepartmental Rent (Appendix 1) 370,070 370,070 381,172 11,102 3% 386795 $7,623 2% TOTAL OPERATING EXPENSES $7,707,644 $7,628,336 $7,586,413 ($127,231) -2% $7,849,265 $262,852 3% Debt Service (Appendix IX) 3,319,365 3,319,365 3,323,165 3,800 0% 3,325,365 $2,200 0% Transfer to Vehicle Reserve Fund 142,055 142,055 146,316 4,261 3% 150,706 $4,390 3% Transfer to Water Meter Reserve Fund 752,100 752,100 0 (752,100) -100% 0 $0 - Transfer to Water Capital Reserve 562,414 562,414 0 (562,414) -100% 0 $0 - TOTAL EXPENSES & TRANSFERS $12 483 578 $12 404,270 $11,055,894 ($1,427 684) -11 % $11,325,336 $269 442 2% NET AVAILABLE FOR CAPITAL $1 724 690 $1 880,452 $2,589,285 $864 595 50% $2,652,646 $63 361 2% 26 Attachment 1 BOARD OF DIRECTORS (Water Budget) This section will describe specific water issues within the FY14 and FY15 budgets. The narrative contained in the electric portion of the budget describes the general function and organization of the Board of Directors. These descriptions apply to the water division also. Several challenges exist for the Water Utility in FY14 and FY15. These challenges include: 1) continue to monitor and manage the cash position; 2) continue the rollout of the Water Meter Installation Project & the SCADA replacement project and 3) continue to repair deteriorated water distribution pipelines (all of the 2006 COP have been spent). The District Pipeline Replacement — 2014 project includes a number of pipeline segments for a total replaced footage of 4,700. Planned funding source is the Capital Replacement Fund. 27 WATER EXPENDITURE DETAIL Attachment 1 PRIOR 12 MO B BOARD OFDIRECTORS B T 2073ET ENDING 5.2013 2014ET CHANGE CHANGET [!B1,1111,1151 05 CHANGE CHANGE Outside Services Employed $12,500 $5,050 $12,500 $0 0% $12,500 $0 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 0% presented at the board level. Miscellaneous General Expenses 85,775 84,603 100,566 14,791 17% 114,457 $13,891 14% 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. TOTAL $98 275 $89 653 $113,066 $14 791 75% $126,957 $73 891 12% 28 Attachment 1 GENERAL MANAGEMENT (Water Budget) This section will describe specific water issues within the FY14 and FY15 budgets. The narrative contained in the electric portion of the budget describes the general function and organization of the General Management. These descriptions apply to the water division also. The largest issues facing the Water Department in FY14 and FY15 will be continued work on the Water Meter Installation Project and continuing field work for the SCADA Replacement Project. Currently, over 93% of customers in the District have been fitted with water meters. Retrofitting the remaining 7% of homes will continue through 2018. Field work for the SCADA replacement project started in FY13 and will continue through several budget cycles. The General Manager has been working with the Board, the Community, and the Public Information and Conservation Department in developing both consumer based and system wide conservation measures. The success of these measures has, and will continue to have a significant impact on rates and future Water Department Budgets. Overall water production is down 19% compared to 2008. Water Department revenues for FY14 and FY15 are projected to be 1 % less than the FY13 budget. The Water Utility achieved a stable financial condition by planning; setting revenue; debt and reserve goals; and implementing appropriate financial procedures to assure responsible financial management. The Vehicle Replacement Fund was established in 2009 to finance the replacement of District vehicles without adding additional external debt. Seven vehicles were replaced during FY12 and FY13. Eleven vehicles are planned for replacement during the upcoming budget cycle. 29 WATER EXPENDITURE DETAIL Attachment 1 GENERAL I B 20 3ET PRIOR 12 MO BUDGET F UDGE BUDGET MANAGEMENT ENDING 5 2013 2014CHANGET=CHAET 20 CHANGE CHANGE Administrative & General - Salaries $332,877 $344,018 $335,537 $2,660 1 % $352,857 $17,321 5% This account is used to charge general administrative staff time other than safety and board related activities. Office Supplies & Expenses 30,123 31,690 31,939 1,816 6% 31,805 (134) 0% This account is used to cover cell phone use, computer expenses, dues & memberships including LAFOO, industry meetings, office supplies, postage, training, assessment, personnel expenses and safety . Outside Services Employed 42,000 35,346 31,500 (10,500) -25% 32,000 500 2% 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. Injuries & Damages (Safety) 18,500 15,445 21,679 3,179 17% 22,114 435 2% This account includes labor for department safety meetings and training and the organization's wellness program. General Advertising Expenses 3,461 4,749 3,950 489 14% 3,986 36 1 This account is used for the cost of publishing ordinances, surplus material, and other legal ad requirements. Misc General Expenses 18,974 17,430 18,774 (200) -1 % 19,545 770 4% 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. TOTAL $445,935 $448 678 $443,379 ($2,556J -1 % $462,307 $18 928 4% 30 Attachment 1 ADMINISTRATIVE SERVICES (Water Budget) This section will describe specific water issues within the FY14 and FY15 budgets. The narrative contained in the electric section of the budget describes the general function and organization of Administrative "Services. These descriptions apply to the water division also. Beginning in FY09, residential water meters were installed. Over 93% of all customers have a meter and will be billed volumetrically. The remaining 7% will be installed by FY18 by existing water operations employees. The newly installed residential water meters identify leaks or malfunctioning stop -and -drain valves. Letters are sent to customers who have possible leaks so that they may quickly identify and correct problems. The District will implement software in FY14 that will allow customers to view their own water consumption over the Internet to help identify leaks and monitor water conservation efforts. 31 WATER EXPENDITURE DETAIL Attachment 1 ADMINISTRATIVE SERVICES I BUDGET PRIOR 12 MO BUDGET $ BUDGET B ENDING 5 2073 CHANGE CHANGE 2075ET CHANGE CHANGET Meters/Services Operations Expenses $3,567 $0 $4,715 $1,148 32% $4,963 $248 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 5% bill complaints. Customer Account Operations Expense -Salaries 71,166 85,734 77,742 6,576 9% 80,697 2,955 4% This account includes the management staff supervision of the customer service and billing functions. Meter Reading Expense 27,654 3,386 3,450 (24,204) -88% 3,604 154 4% 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. Customer Records & Collections Expense 406,188 410,756 418,943 12,755 3% 440,578 21,635 5% 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. Customer Records & Collections - Meter Readers 31,185 522 0 (31,185) -100 % 0 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. 0 Provision for Bad Debts 46,355 14,065 11,550 (34,805) -75% 11,897 347 3% This account represents the amount of uncollectable bills for the year. Administrative & Operations General -Salaries 341,975 345,372 339,557 (2,418) -1 % 364,209 24,652 7% 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. Office Supplies & Expenses 77,664 59,959 69,115 (8,549) -11 % 71,188 2,073 3% 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. Outside Services Employed 30,883 54,314 26,330 ($2,553) -8% 29,180 850 3% 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. Insurance 176,723 150,023 170,705 (6,018) -3% 175,826 5,121 3% This account Includes annual insurance premiums for property, liability, umbrella liability, directors & officers liability, difference in conditions, boiler & machinery coverage insurance. Injuries & Damages (Safety) 3,277 4,398 2,147 (1,130) -34% 2,236 89 4% 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. TOTAL $1,216,637 $1,128,529 $1,126,254 ($90,383) -7% $1,184,377 $58,123 5/ 32 Attachment 1 PUBLIC INFORMATION AND CONSERVATION (Water Budget) . This section will describe specific water conservation issues within the FY14 and FY15 budgets. The narrative contained in the electric section of the budget describes the general function and organization of Public Information and Conservation. These descriptions apply to the water division also. Significant progress has been made developing water conservation programs such as Water Efficient Toilet Rebate, Water Efficient Toilet Exchange, Customer Water Leak Repair Rebate, and Green Partners Water programs. In addition, the District continues to develop 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. The combined impacts of water main -line replacements, the water -meter effect, and water conservation programs have lowered water consumption by -30% in recent years. 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. Starting in late FY10, 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). The partner agencies each adopted the GMP in early FY13 and the model is expected to be finalized in late FY13. This effort will continue in FY14 and FY15 with the implementation of the GMP actions, the continuation of the Stakeholder Working Group (SWG), and the roll -out of the model to the public and.SWG. The District will continue our communication and outreach on water main line replacement projects, wetlands, and general water supply/quality issues. The District continues to track water legislative and regulatory activities related activities mainly through our membership and participation in the California Municipal Utilities Association (CMUA) and California/Nevada American Water Works Association (CA/NV AWWA). Key current and pending issues include the California Bay/Delta Plan, the need for a new water bond or public benefits charge, emerging water quality standards, and conservation mandates. 33 WATER EXPENDITURE DETAIL Attachment 1 CONSERVATIONGET BUDGET PR I ENDING 5.2013 BUDGET PN1111hNF1 %CRUD CHANGE CHANGET 20G CHANGE HANGE Water Conservation $246,914 This account includes water conservation & efficiency programs. $167,108 $183,113 (63,801) -26% $188,648 5,535 3% Public Information 66,200 This account includes the activities of the PIO plus the website and newsletter. 61,606 89,438 23,238 35% 94,564 5,126 6% Admin & General Salaries 19,381 This account includes the administrative salaries to perform various administrative projects. 21,660 15,740 (3,641) -19% 16,568 828 5% Office Supplies & Expenses 7,727 This account includes office supplies, dues, memberships and meeting and training expenses. 4,346 6,000 (1,727) -22% 6,180 180 3% Office Supplies & Expenses - Leg & Reg 1,364 573 9,636 8,472 621 % 10,199 363 This account is for legislation and regulation tracking labor. 4% Injuries & Damages 0 This account Includes labor for department safety meetings, equipment and training. 766 368 368 - 387 19 5% General Advertising 10,908 This account includes TDPUD marketing and media activities. 11,241 12,750 1,842 17% 13,133 383 3% Misc General Expense 2,273 1,400 2,400 This account includes support of community activities such as sponsorship of the Truckee Home Show, Chamber activities, etc. 127 6% 2,472 72 3% TOTAL $354 767 $268,700 $319,644 ($35123J -10% $332,150 $12,506 4% 34 Attachment 1 WATER OPERATIONS The main objective for Water Operations 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 by maintaining and implementing the current Water Master Plan, including the required facilities to supply current and future demands, and by providing effective and efficient operation, maintenance and replacement programs. The Water Department is organized into three groups: 1) Distribution system operations, maintenance and repairs; 2) Facilities operation, maintenance and repair, including water quality and treatment facilities; and 3) System engineering and planning. The FY14 and FY15 Budget staffs the department with a Water Utility Manager (also serving as General Manager), a System Engineer, a Superintendent, a Quality and Testing Inspector, an Operations Foreman, an Operations Leadman, two Operations Service Technicians, a Distributions Foreman, a Distribution Leadman, and five Distribution Service Technicians.. The Water Department's operational, distribution, and engineering staffs are licensed by the California Department of Public Health to operate and maintain the District water system. This requires staff to participate regularly in updated training and to maintain operator certifications. Staff is also continually trained on water system safety procedures and OSHA standards. This training ensures the workforce is qualified and productive, and it provides safe work conditions and procedures that encourage employee growth, productivity and retention. The main challenges for the Operations Group in FY14 and FY15 will be the continued progress toward completing the SCADA replacement project and meter installation program. 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. 35 WATER EXPENDITURE DETAIL Attachment 1 WATER BUDGET PRIOR 12 MOS BUDGET OPERATIONS 2013 $BUDGET % BUDGET BUDGET $BUDGET %BUDGET ENDING 5.2013 2014 CHANGE CHANGE 2015 CHANGE CHANGE Operations Supervision & Engineering $197,486 $187,855 $239,631 $42,345 21 % $267,091 $27,260 This account is utilized by the water manager, superintendent and engineer for supervision, engineering and management of District water system. 11 % Facilities Operations 754,969 776,607 624,014 (130,955) -17% 648,356 24,342 4% 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. Power Supply 1,474,241 1,313,894 1,306,425 (167,816) -11% 1,306,646 223 0% This account includes the cost of electrical power for the operation of the wells and pump stations. Distribution Operations/PM 487,410 625,822 616,629 129,219 27916 608,397 (8,232) -1% This account includes the labor and materials to operate the water distribution system. Misc General Operations/PM 204,410 280,700 253,530 49,120 24% 260,439 6,909 3% 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. Meters/Service Operation 146,352 95,926 86,749 (59,603) -41% 90,135 3,386 4% Maintenance of Operations Sup & Engineering 186,536 164,746 95,886 (90,650) -49% 101,365 5,479 6% Used by water manager, superintendent and engineer for supervision, engineering and management of District water system. Maintenance of Sources 770,800 640,344 814,764 43,964 6% 844,184 29,420 4% This account includes the maintenance and repair of pumps, motors, electrical control equipment and building repair. Maintenance of Distribution Lines 452,214 362,868 493,925 41,711 9% 494,789 863 0% This account includes the maintenance and repair of distribution line leaks, broken fire hydrants, etc. injuries & Damages 102,242 99,715 116,705 14,463 14% 119,982 3,278 3% This account includes labor for safety meetings, equipment and training expenses. Maintenance of District Office Building (Div 1) 528,922 415,896 477,261 (51,661) -10% 505,193 27,933 6% TOTAL $5,305,582 $4,964,373 $5,125,718 (179,864J -3% $5,246,580 $120,862 2% 36 Attachment 1 INFORMATION TECHNOLOGY (IT) (Water Budget) The Information Technology (IT) Department is headed by the IT/IS/GIS Operations Manager and also includes the IT/GIS Analyst and IT/SCADA Engineer positions. A Network & Systems Administrator position has been added to the FY14 budget to: help reduce outside contractor costs for the District's IT needs, increase IT knowledge of systems security, and provide additional accountability and redundancy to existing IT staff. The highest priority for this department is to enable the water department to operate faster, better and more cost efficiently, while providing secure access to critical control, mapping and information systems. The departments 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. Simply put, the underlying vision needed to accomplish the department's mission is: Turn data into information and information into action. To achieve the goals and implement the strategies. in this plan, the ten guiding principles below focus 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, including the management ranks and policy -makers. 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. Foster interdepartmental cooperation in everything we do. 3. View IT from the perspective of the entire district and not from the perspective of individual departments. 4. Acquire, manage, and use technology resources economically and efficiently through standardized information technology selection and implementation processes. 5. Securely hold and manage technology assets to protect private information. 6. Develop mechanisms and processes to share information easily within the organization and with customers and partners. 7. Understand that availability and access to technology is a given, and design and build 'systems accordingly. 8. Aggregate, where feasible, to reduce duplication, and employ information technology that is flexible and interoperable to respond quickly and efficiently to changing business needs. 9. 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 37 WATER EXPENDITURE DETAIL Attachment 1 IT BUDGET PRIOR 12 MOS BUDGET $BUDGET % BUDGET 1 BUDGET $ BUDGET % BUDGET 2013 ENDING 5.2013 2014 CHANGE CHANGE 2015 CHANGE CHANGE Engineering & SCADA Operations $43,016 $8,384 $126,160 $83,144 193% $156,903 $30,743 This account is for the operational use of SCADA, Outage Management and Engineering support. 24% GIS/Engineering Operations 259,500 179,521 90,483 (169,017) -65% 99,401 8,918 10% This account is for the maintenance of software and data that supports engineering and SCADA. Meter Reading 15,670 13,190 33,360 17,690 113% 33,555 195 1% This account is for the maintenance of software and data that supports meter technology and AIAL Customer Records 49,120 51,215 88,622 39,502 80% 84,248 (4,374) -5% This account is for the maintenance of software and data that supports Customer Information and Customers. Administrative & General IT Ops . 7,000 0 171,670 164,670 2352% 196,126 24,456 14% This account is for the maintenance of hardware and software infrastructure that supports data transport, storage and security. Office Supplies & Expenses 70,996 106,023 17,200 (53,796) -76% 16,090. (1,110) -6% This account includes office supplies, dues, memberships, meeting and training expenses. Outside Services Employed 0 0 26,320 26,320 - 26,320 0 This account is for outside professional services contracted to maintain hardware, software and data. 0% Safety 0 0 This account includes department labor for safety meetings, safety equipment and training expenses. 625 625 - 649 24 4% TOTAL $445 302 $358 333 $554,441 $109 139 25% $613,292 $58 851 11 38 Attachment 1 39 ELECTRIC CAPITAL PLAN Attachment 1 SOURCE OF FUNDS SOURCE OF FUNDS BUDGET 2014 BUDGET 2015 Operations Customer Contributions OP CC $3, 065, 081 $2, 783,476 Vehicle Reserve VR 573,462 608,545 Total Source of Funds 478,816 $4,117,359 68,011 $3,460,032 USE OF FUNDS ELECTRIC OPERATIONS; SOURCE OF FUNDS BUDGET 2014 BUDGET 2015 New Services - BWO CC $30,541 $32,033 Commercial Services - BWO CC 7,853 8,299 Meter Test & Purchase - BWO CC 49,524 51,108 Meter Test & Purchase OP 21,225 21,904 Purchase & Ins. Transformers - BWO CC 43,560 45,291 Purchase & Ins. Transformers OP 18,668 19,410 Development Agreements CC 412,024 439,202 Flat Fee Construction - BWO CC 23,854 26,178 Secondary Poles & Conductors - BWO CC 6,106 6,433 Conduit & Boxes - BWO OP 7,963 8,349 Line Extension & Upgrades OP 263,568 278,480 Pole Replacements OP 98,047 104,826 Various District Projects OP 151,505 160,024 Electric Master Plan Projects OP 483,814 562,820 Reclosers & Regs - Field Scada OP 93,640 95,644 Distribution Repl & Improvement OP 396,294 417,567 Upgrades Donner Lake Substation OP 348,498 899,491 Anciliary SCADA Hub OP 201,936 0 Vehicles VR 478,816 68,011 Subtotal $3,137,433 $3,245,069 40 ELECTRIC CAPITAL PLAN Attachment 1 BUILDING MAINTENANCE: SOURCE OF FUNDS BUDGET 2014 BUDGET 2015 Access Door Control OP $47,705 $0 Warehouse Lighting Project (Conservation Dept) OP 0 10,000 Improve Customer Entrance OP 47,705 0 Subtotal $95,411 $10,000 IT: AutoCad Upgrade Communication Upgrade - Unification Communication Upgrade - Radios Communication Upgrade - Phone System Data/SCADA Hub Digital Media Extension Network Infrastructure Development NISC Smart Hub SCADA Reliability Improvement SCADA Site Security Camera Project USA Ticket Integration Electric AMI SCADA Operations Center Subtotal SOURCE OF FUNDS BUDGET 2014 BUDGET 2015 OP $15, 000 $0 OP 77,072 0 OP 232,704 0 OP 157,427 0 OP 150,076 0 OP 13,936 6,397 OP 53,273 64,856 OP 4,816 0 OP 165,090 0 OP 4,452 84,079 OP 10,669 0 OP 0 41,975 OP 0 7,655 $884,515 $204,963 Total Capital Projects & Equipment $4,117,359 $3,460,032 41 Attachment 1 42 SOURCE OF FUNDS Attachment 1 SOURCE OF FUNDS I BUDGET20141 BUDGET 2015 Operations OP $ 809,200 $ 952,005 Vehicle Reserve Fund VR 47,617 95,523 Meter Reserve MR 394,659 450,379 Capital Reserve Fund CR 1,337,807 1,154 737 Total Source of Funds $2,589,284 $2,652,644 USE OF FUNDS WATER OPERATIONS: Water Meters Pipeline Replacement Donner View Replacement Misc Facility Remodel Northside Well Building Replacement Vehicles Subtotal IT: AutoCad Upgrade Digital Media Extension NISC Smart Hub SCADA Reliability Improvement SCADA Replacement Project SCADA Site Security Camera Project USA Ticket Integration SCADA Operations Center SOURCE OF FUNDS BUDGET 2014 BUDGET 2015 MR $ 394,659 $ 450,379 CR/OP 1,208,933 1,052,564 CR 156,637 - CR 64,762 - CR - 368,957 VR 47,617 95,523 $ 1,872,609 $ 1,967,423 OP 15,000 0 OP 13,936 6,397 OP 4,816 0 OP 165,090 0 OP 502,713 587,089 OP 4,452 84,079 OP 10,669 0 OP 0 7,655 $ 716,675 $ 685,221 Total Capital Projects & Equipment $2,589,284 $2,652,644 43 Attachment 1 44 Attachment 1 2014 APPENDIX 1 INTERDEPARTMENTAL RENT DISTRICT HEADQUARTERS; Building operation/PM/repair Depreciation of jointly used assets Building rental income TOTAL COSTS 477,261 (1,600) $762, 345 The above costs are paid by the Electric Utility, the Water Utility is charged with 50%, which is $381,172 through a monthly rental charge of $31,764 45 Attachment 1 2015 APPENDIX 1 INTERDEPARTMENTAL RENT DISTRICT HEADQUARTERS: Building operation/PM/repair Depreciation of jointly used assets Building rental income TOTAL COSTS 5057193 273,997 (1,600) $777, 590 The above costs are paid by the Electric Utility, the Water Utility is charged with 50%, which is $388,795 through a monthly rental charge of $32,400 46 Attachment 1 APPENDIX 2 BUDGETED POSITIONS BY DEPARTMENT BUDGET 2t�14 . BUDGET 20 f5 ADMINISTRATION General Manager $218,348 $224,898 Project Manager 98,985 101,955 Executive Secretary 77,565 79,893 Human Resources Administrator 98,883 106,794 ADMINISTRATIVE SERVICES Admin Services Manager 173,447 178,651 Senior Accountant/Accounting Analyst 96,572 99,470 Customer Services Manager 91,971 94,732 Work Order Accounting Supervisor 74,298 76,527 Work Order Clerk 51,771 Accounting/Computer Operations Supervisor 74,298 76,527 Customer Billing Supervisor 74,298 76,527 Customer Serv/Collections Supervisor 74,298 76,527 Senior Clerk (3) 183,306 188,804 General Clerk (3) 166,375 174,273 Meter Reader Coordinator 65,749 67,721 Wharehouse/Utility Worker 59,638 64,409 Buyer/Clerk 74,298 76,527 Overtime 11,241 11,588 CONSERVATION Public Information and Conservation Manager 146,257 150,644 Conservation Administrator 81,442 83,886 Conservation Services Representative 64,158 69,291 Conservation Services Representative Water (1/2 FTE) 23,370 25,240 Overtime 9,375 10,125 ELECTRIC OPERATIONS Power Supply Engineer/Asst General Manager 191,212 196,949 Electric Superintendent/Project Administrator 142,678 146,958 Electric Superintendent 142,682 146,962 Electric System Engineer 149,816 154,311 Electric Engineer 120,318 123,926 Lead Inspector 107,099 110,313 47 APPENDIX 2 BUDGETED POSITIONS BY DEPARTMENT POWER SUPPLY Attachment 1 IT/IS/GIS Operations Manager 132,658 136,637 IT/SCADA Engineer 109,136 117,867 IT/GIS Analyst 79,920 82,318 Network & System Administrator 80,001 86,401 WATER OPERATIONS Water System Engineer 153,568 158,176 Water Superintendent 103,938 112,253 Water Quality Inspector 97,148 100,063 Water Foremen (2) 194,297 200,125 Water Leadmen (2) 172,020 177,183 Water Service Technicians (8) 639,359 658,545 Mechanic 90,316 93,026 Assistant Mechanic 76,124 78,408 Facilites Maintenance/Relief Utility Worker 65,749 67,721 Seasonal Worker 1 29,087 29,959 Seasonal Worker II 25,131 Standby/Overtime 141,814 146,070 TOTAL $6,710,899 $6,998,284 48 VALUE OF BENEFITS Medical /Dental insurance Vision insurance Long term disability Life insurance Longevity FICA Fed Med Worker's compensation insurance Pension Other Post Employment Benefits Value of non -productive labor (vacation, sick leave, holiday) TOTAL VALUE OF BENEFITS PRODUCTIVE LABOR Recommended labor (Appendix II) Less value of non -productive labor TOTAL PRODUCTIVE LABOR PAYROLL OVERHEAD (Value of benefits/productive labor) BENEFITS AS A PERCENT OF TOTAL LABOR AND BENEFITS Attachment 1 $1, 796, 953 36,000 28,298 43,470 21,710 385,292 96,522 174,208 1,960,042 95,541 949,710 $5, 587, 745 $6, 710, 899 (949, 710) $5, 761,188 96,99 49 49 P118yl��,02910 �110Mw VALUE OF BENEFITS Medical /Dental insurance Vision insurance Long term disability Life insurance Longevity FICA Fed Med Worker's compensation insurance Pension Other Post Employment Benefits Value of non -productive labor (vacation, sick leave, holiday) TOTAL VALUE OF BENEFITS PRODUCTIVE LABOR Recommended labor (Appendix II) Less value of non -productive labor TOTAL PRODUCTIVE LABOR PAYROLL OVERHEAD (Value of benefits/productive labor) BENEFITS AS A PERCENT OF TOTAL LABOR AND BENEFITS Attachment 1 $1,910,949 36,360 28,998 45,233 22,770 400,653 100,894 188,565 2,095,193 95,541 992,526 $5, 917, 682 $6, 998, 284 (992, 526) $6, 005, 758 98.53 50 s0 Attachment 1 2014 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 Insurance Replacement (depreciation expense) TOTAL TRANSPORTATION EXPENSE DIRECT LABOR HOURS General Manager Administrative Services Conservation Electric Operations Water Operations Power Supply TOTAL DIRECT LABOR HOURS TRANSPORTATION/EQUIPMENT OVERHEAD PER HOUR COST ($966,563 DIVIDED BY 79,442) $697,410 19,013 250.140 $966,563 5,002 2,813 530 33,818 36,028 4,752 82,943 $11.65 51 2015 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 Insurance Replacement (depreciation expense) TOTAL TRANSPORTATION EXPENSE DIRECT LABOR HOURS General Manager Administrative Services Conservation Electric Operations Water Operations Power Supply TOTAL DIRECT LABOR HOURS TRANSPORTATION/EQUIPMENT OVERHEAD PER HOUR COST ($1,005,168 DIVIDED BY 78,588) $735, 635 19,393 250,140 $1,005,168 5,002 2,813 530 331838 34,806 5,413 82,402 $12.20 Attachment 1 52 2014 APPENDIX 5 ADMINISTRATIVE OVERHEAD COMMON SUPPLY COSTS: Purchasing/Warehousing of Common Supplies Labor Accounts Payable Overhead: Labor Administrative Warehousing Operating Costs Utilities & Building Maintenance Miscellaneous (insurance) Subtotal Common Supplies Outside staff supplies Inside staff supplies Joint department supplies Subtotal TOTAL COMMON SUPPLY COSTS TOTAL PRODUCTIVE LABOR ADMINISTRATIVE OVERHEAD Attachment 1 $113,772 6,947 110,347 5,802 28,283 5,403 $270, 554 $8, 752 5,871 8,357 $22, 980 $293, 534 $5, 761,188 5.10% 53 2015 APPENDIX 5 ADMINISTRATIVE OVERHEAD COMMON SUPPLY COSTS: Purchasing/Warehousing of Common Supplies Labor Accounts Payable Overhead: Labor Administrative Warehousing Operating Costs Utilities & Building Maintenance Miscellaneous (insurance) Subtotal Common Supplies Outside staff supplies Inside staff supplies Joint department supplies Subtotal TOTAL COMMON SUPPLY COSTS TOTAL PRODUCTIVE LABOR ADMINISTRATIVE OVERHEAD Attachment 1 $119,801 7,155 118,040 6,146 29,588 5,565 $286,296 $9,015 6,047 8,608 $23, 669 $309, 965 $6, 005, 758 5.16% 54 2014 APPENDIX 6 CONSTRUCTION OVERHEAD Step 1 General direction and general construction costs from budget: Electric Operations $48,935 Water Operations 46,028 Total $94,963 Step 2 Determine capitalized labor as a percent of total labor: Capitalized Labor = $814,199 = 22.27% Total Electric & Water Labor $3,655,329 Step 3 Determine construction overhead to be capitalized. Total General direction & construction costs $94,963 of labor to be capitalized 22.27% General direction & construction costs to capitalize $21,152 Construction accounting costs to capitalize 111,046 $132,198 Step 4 Calculate construction overhead to be applied to capital improvements: Capital Overhead = $132,198 = Capital Labor $814,199 CONSTRUCTION OVERHEAD = 16,24 16.24 Attachment 1 55 2015 APPENDIX 6 CONSTRUCTION OVERHEAD Step 1 General direction and general construction costs from budget: Electric Operations $50,829 Water Operations 47,306 Total $98,135 Step 2 Determine capitalized labor as a percent of total labor: Capitalized Labor = $943, 697 = 24.98 Total Electric & Water Labor $3,777,779 Step 3 Determine construction overhead to be capitalized: Total General direction & construction costs $98,135 of labor to be capitalized 24.98% General direction & construction costs to capitalize $24,514 Construction accounting costs to capitalize 175,851 $200, 366 Step 4 Calculate construction overhead to be applied to capital improvements: Capital Overhead = $200,366 = 21.23% Capital Labor $943,697 CONSTRUCTION OVERHEAD = 21.23 Attachment 1 56 Attachment 1 APPENDIX 7 ELECTRIC DEBT SCHEDULE Principal and Interest Payments Refinanced Pension Liability YEAR TOTAL 2014 863,150 863,150 2015 894,725 894,725 2016 927,300 927,300 2017 960,675 960,675 2018 995,650 995,650 2019 1,030,975 1,030,975 2020 1,067,425 1,067,425 2021 1,104, 775 1,104, 775 2022 562,725 562,725 8,407,400 8,407,400 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. 57 Attachment 1 APPENDIX 8 WATER DEBT SCHEDULE Principal and Interest Payments 2066 2006 2006 DWR-SRF DWR MSG MSG COP COP COP DONNER LAKE PROP 55 #1551 #1552 YEAR Rates FF Assmt Assmt Rates FF Assmt TOTAL 2014 1,441,798 359,075 98,016 800,852 306,481 150,158 166,786 3, 323,165 2015 1,445,599 358,875 96,615 800,852 306,481 150,158 166,786 3,325,365 2016 1,440,403 356,594 99,692 800,852 306,481 150,158 166,786 3,320,965 2017 1,441,699 356,070 98,120 800,852 306,481 150,158 166,843 3,320,222 2018 1,440,404 356,284 96,801 800,852 306,481 3,000,822 2019 1,443,958 355,324 100,207 800,852 306,481 3,006,821 2020 1,441,399 357,617 97,973 800,852 306,481 3,004,321 2021 1,430,369 356,179 96,216 800,852 153,241 2,836,856 2022 703,445 358,008 99,060 800,852 1,961,366 2023 704,873 358,672 97,837 800,852 1,962,235 2024 701,233 359,233 100,297 800,852 1,961,615 2025 704,966 360,884 97,925 800,852 1,964,627 2026 701,784 359,005 99,736 1,160, 525 2027 703,819 359,806 97,150 1,160,775 2028 701,660 358,474 99,142 1,159,275 2029 700,480 360,101 100,444 1,161,025 2030 704,268 359,147 97,360 1,160,775 2031 700,580 359,524 98,421 1,158,525 2032 701,858 357,313 100,104 1,159,275 2033 701,511 359,424 101,490 1,162,425 2034 702,034 359,309 97,207 1,158,550 2035 705,426 358,213 99,236 1,162,875 2036 703,318 356,908 99,724 1,159,950 22, 066,882 8,240, 041 2,268, 770 9,610,224 2,298, 606 600,632 667,201 45 752,356 Loan Descriptions: 2006 COP - Water system improvements and Donner Lake financing DWR/SRF - Replacement of Donner Lake Water System DWR/Prop 55 - Water system improvement projects MSG #1551 - Municipal Services Group #1551 - Bridge Street Tank construction MSG #1552 - Municipal Services Group #1552 - Glenshire Pipeline Project 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. 58 Attachment 1 APPENDIX 9 VEHICLE REPLACEMENT SCHEDULE UNiT # DESCRIPTION DEPARTMENT AGE REPLACEMENT 101 06 Ford Escape Hydbrid Administration 8 2015 102 06 Ford Escape Hydbrid Administration 8 2015 103 06 Ford Escape Hydbrid Administration 8 2015 104 06 Ford Escape Hydbrid Administration 8 2015 105 07 Chevy Trail Blazer Administration 7 2017 106 13 Ford Escape Administration 1 2023 135 07 Chevy Colorado Administration 7 2017 136 08 Chevy Colorado Administration 6 2018 148 02 Chevy Blazer 4WD Administration 12 2014 149 02 Chevy Blazer 4WD Administration 12 2014 200 06 Chevy Silverado Electric 8 2016 201 08 GMC 3500 HD Electric 6 2018 202 06 Chevy Silverado Electric 8 2014 203 06 Chevy Silverado Electric 8 2014 204 06 Chevy Silverado 3500 Electric 8 2014 205 06 Chevy Silverado 3500 Electric 8 2016 206 10 Chrvy Silverado 2500 HD Electric 4 2020 207 13 GMC Sierra 2500HD Electric 1 2023 210 11 International/Alter 3050A Electric 3 2026 211 99 int'l Double Bucket Truck 4WD Electric 15 2014 212 2000 GMC Pick-up 4WD 314 ton Electric 14 2010 216 07 Intl SC-45 Bucket Truck 4WD Electric 7 2022 217 08 International 7300 Electric 6 2014 226 98n Intl Digger/Derrick 4WD Electric 16 2013 228 08 GMC 2500HD Electric 6 2018 283 72 HGDAV Spool Trailer Electric 42 2014 295 08 John Deer 35D Electric 6 2023 301 06 Chevy Silverado 3500 Water 8 2016 303 07 Chevy Silverado 1500 Water 7 2017 304 07 Chevy Silverado 1500 Water 7 2017 305 07 Chevy Silverado 1500 Water 7 2017 306 13 GMC Sierra 2500hd Water 1 2023 307 13 GMC Sierra 2500hd Water 1 2023 314 08 John Deer 410 J Water 6 2023 59 Attachment 1 APPENDIX 9 VEHICLE REPLACEMENT SCHEDULE UNIT # DESCRIPTION DEPARTMENT AGE REPLACEMENT 320 10 International Dump Truck Water 4 2025 323 11 Ford F-550 Water 3 2021 324 11 Ford F-550 Water 3 2021 325 11 Ford F-550 Water 3 2021 330 13 International Dump Truck Water 1 2028 342 96 4WD Flatbed w/Knuckle Boom Water 18 2011 343 08 Chevy Silverado 3500 Water 6 2018 345 11 Chev Silverado 2500 Water 3 2021 350 02 GMC 3500 4WD Service Body Support Services 12 2012 369 05 Freight liner/Mudd Dog Water 9 2020 374 98 410E John Deere Backhoe Water 16 2013 375 95 928F Caterpillar Wheeled Loader Water 19 2010 399 12 New Holland Water 2 2027 501 07 Chevy Silverado 1500 Support Services 7 2017 503 06 Chevy Silverado 3500 Support Services 8 2016 508 97 GMC Pickup 4WD 314 Ton Support Services 17 2015 580 01 Trackless Snowblower Support Services 13 2016 60