HomeMy WebLinkAbout2013-11-06 MinutesREGULAR MEETING
November 6, 2013
In accordance with District Code Section 2.08.010, the TDPUD minutes are action
only minutes. All Board meetings are recorded on a digital format which is pre-
served in perpetuity and made available for listening to any interested party upon
their request.
The regular meeting of the Board of Directors of the Truckee Donner Public Utility
District was called to order at 6.00 PM in the TDPUD Board room by President Bender.
ROLL CALL: Directors Joe Aguera, Jeff Bender, Bob Ellis, Ron Hemig, and
Tony Laliotis were present.
PLEDGE OF ALLEGIANCE
Director Hemig led the Board and public in the Pledge of Allegiance.
EMPLOYEES PRESENT Kathy Neus, Neil Kaufman, Lauren Schaake-Hudson, Bob
Mescher, Stephen Hollabaugh, Steven Poncelet, Michael Holley and Barbara Cahill
CONSULTANTS PRESENT Steve Gross and Shawn Koorn
OTHERS PRESENT Juanita Schneider
CHANGES TO THE AGENDA
General Manager Holley stated there were no changes to the agenda.
PUBLIC INPUT
There was no public input.
DIRECTOR UPDATE
There were no Director updates.
PUBLIC HEARING: DRAFT FY14 AND FY15 BUDGET PUBLIC HEARING
The public hearing was opened at 6.01 PM. There were no public comments, or
comments received by email or mail. The Public hearing was closed at 6.03 PM.
1 Minutes: November 6, 2013
ACTION ITEMS
CONSIDERATION OF:
A) ACCEPTING THE WATER RATE STUDY REPORT
B) A DRAFT ORDINANCE SETTING THE WATER RATES
C) SETTING A PUBLIC HEARING DATE REGARDING WATER RATES
This item involves consideration of accepting the HDR Water Rate Study Report
and the proposed water rates for FY14 and FY15
Director Hemig moved, and Director Ellis seconded, that the Board:
• Accept the HDR Water Rate Study Report;
• Accept the proposed draft of the water rate ordinance subject to the changes
suggested by Counsel Gross to the sixth WHEREAS to read "the District
received protests on the retail water rates from less than the majority of parcels
within the District'; and
• Set January 15, 2014 as the date of the public hearing regarding water rates
ROLL CALL: All Directors aye, by voice vote. SO MOVED
CONSIDERATION OF REVISING THE SOLAR REBATE SCHEDULE FOR THE SB-1
PROGRAM This item involves revising the SB-1 Solar Program Rebate amounts.
Director Hemig recused himself as he has a new solar project to submit.
Director Ellis moved, and Director Laliotis seconded, that the Board revise the rebate
per watt amount to decrease by 7% annually for the remaining years of the program
beginning in 2014. ROLL CALL: Director Hemig, recused; all other Directors aye, by
voice vote. SO MOVED
BUDGET ITEM
BUDGET: FY14 AND FY15
A) FY14 AND FY15 BUDGET SUMMARY
B) TEN-YEAR FINANCIAL MASTER PLAN PROJECTION
Bob Mescher gave a presentation.
• Budget Process Schedule
o September 4
■ Mission, goals and objectives
■ Budget assumptions
■ Organization chart
■ Labor
■ Existing debt
o September 18
■ Purchased Power Plan
■ RPS definition change by CEC
■ Overview of Prop 18 process
o October 2
■ Electric and Water operational and capital budgets
2 Minutes: November 6, 2013
o October 16
■ Set public hearing date for budget
■ Support services operational and capital budgets
■ Budget summary
■ Financial Master Plan
■ Revenue requirements
■ Electric and Water reserve balance projections
o November 6 (tonight)
■ Draft FY14 & FY15 Budget and Financial Master Plan
■ Public Hearing — Draft budget
■ Water Rate Study — Shawn Koorn, HDR
■ Set public hearing date for water rates
o November 20
■ Consider adopting budget
o January 15
■ Public Hearing — water rates
■ Consider adopting water rate ordinance
o February 15
■ Water rates can become effective
District Code requires the District to prepare a two-year budget
On September 4, Staff presented the following assumptions:
o Annual inflation is expected to be 3%
o New development activity will increase
o No new debt
o No planned electric rate increase in FY14 & FY15
o Estimated water rate annual increase of 3% in FY14 & FY15
o $5 monthly water meter surcharge (7.5%) ends December 31 st
o Estimated labor rate increase of 2% in FY14
o Estimated labor rate increase of 3% in FY15
o One IT employee added in FY14
o One Work Order employee restored in FY15
Overhead Allocations
o Overhead allocation rates are used to allocate indirect expenses (overhead)
to work orders, departments, etc.
o Indirect expenses are impossible or impractical to assign to a specific job,
function, work order, etc.
o Overhead allocation rates are no indication of efficiency or inefficiency, but
merely a factor used to allocate indirect expenses
o Allocation method is the same as prior budgets except Inventory Overhead
has been eliminated and combined with Administration Overhead
o Existing and proposed overhead allocation rates
Overhead Type
FY13
FY14
FY15
Labor
99%
97%
99%
Transportation
$ 12.09
$ 11.65
$ 12.20
Inventory
21 %
N/A
N/A
Administration
3%
5%
5%
Construction
1 18%
16%
21
Note: Beainnina FY14. inventory overhead w
consolidated with administration overhead
MW
3 Minutes: November 6, 2013
0 Comparison of FY14 Budget to FY13 Budget (in thousands)
FY 13 Budget FY 14 Budget - DRAFT % Variance
Electric Water Total Electric Water Total Electric Water Total
Revenue $23,240 $10,910 $34,150 $23,330 $10,800 $34,130 0% -1% 0%
Expenses 19,990 7,710 27,700 20,390 7,590 27,980 2% -2% 1%
Income $ 3,250 $ 3,200 $ 6,450 $ 2,940 $ 3,210 $ 6,150
Plus:
From Funds 1,150 3,300 4,450
Less:
Debt Service 890 3,320 4,210
Capital Projects 2,890 1,720 4,610
To Reserves 620 1,460 2,080
Surplus (Deficit) - - -
2,380 2,850 5,230 107% -14% 18%
860
3,320
4,180
-3%
0% -1%
3,540
2,590
6,130
22%
51% 33%
920
150
1,070
48%
-90% -49%
0 Comparison of FY15 Budget to FY14 Budget (in thousands)
FY 14 Budget - DRAFT
FY 15 Budget - DRAFT
% Variance
Electric
Water
Total
Electric
Water
Total
Electric Water Total
Revenue
$23,330
$10,800
$ 34,130
$23,560
$11,213
$ 34,773
1%
4%
2%
Expenses
20,390
7,590
27,980
20,910
7,850
28,760
3%
3%
3%
Income
$ 2,940
$ 3,210
$ 6,150
$ 2,650
$ 3,363
$ 6,013
Plus:
From Funds
2,380
2,850
5,230
2,000
2,770
4,770
-16%
-3%
-9%
Less:
Debt Service
860
3,320
4,180
890
3,330
4,220
3%
0%
1%
Capital Projects
3,540
2,590
6,130
2,850
2,653
5,503
-19%
2% -10%
To Reserves
920
150
1,070
910
150
1,060
-1%
0%
-1%
Surplus (Deficit)
M
Minutes: November 6, 2013
Electric Projected Cash & Reserve Balance
(in thousands)
FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23
Water Projected Cash & Reserve Balance
(in thousands)
• This public hearing and budget workshop are part of the overall budget process
that will affect the District's spending for the next two fiscal years
• The Finance Master Plan validates that the proposed FY14 and FY15 Budget is
consistent with the District's long-term goals
There was no public comment.
5 Minutes: November 6, 2013
Board Discussion:
• Budget is fair and balanced
• Staff has done an excellent job putting together a budget that takes care of a
moderate rate increase to make sure we are keeping up with expenses and
costs, provides a fair and equitable rate.
• Budget looks good and balances.
• The small increase for water and lack of increase in electric helps out.
• There are no drastic changes, even keel, works well.
• The budget stays where the Board likes to see it.
• Good work to staff for a fair, balanced and equitable budget.
ROUTINE BUSINESS
TREASURER'S REPORT
Approval of the fund balances as of September 30, 2013: Director Hemig moved,
and Director Laliotis seconded, that the Board approve the treasurer's report for the
month ended September 30, 2013. ROLL CALL: All Directors, aye. SO MOVED.
Approval of disbursements for October 2013 Director Aguera moved, and Director
Ellis seconded, that the Board approve the October 2013 disbursements report.
ROLL CALL: All Directors, aye. SO MOVED.
APPROVAL OF MINUTES FOR OCTOBER 2 AND 16, 2013 Director Laliotis moved,
and Director Ellis seconded, that the Board approve the minutes of October 2 and 16,
2012. ROLL CALL: All Directors, aye. SO MOVED.
ADJOURNMENT
There being no further business before the Board, the meeting was adjourned at 7.45.
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
Jeff Bender, President
Prepared by
Barbara Cahill, Deputy District Clerk
6 Minutes: November 6, 2013