HomeMy WebLinkAbout14 Revision district code title 3 Agenda Item # 14
11
It Public Utility District
ACTION
To: Board of Directors
From: Mary Chapman
Date: July 02, 2008
Subject: Approve the Resolution for Revisions to District Code, Title 3
Finance &Accounting
1. WHY THIS MATTER IS BEFORE THE BOARD
The District Code should periodically be reviewed and updated to conform to District
Board policies, new applicable laws, regulations and District procedures.
2. HISTORY
At the March 19, 2008 meeting, the Board adopted a new Process and Procedure for
Retention of Consulting Services for inclusion in Title 3. At the April 2, 2008 meeting,
a draft revision of the Financial Goals section of Title 3 was presented for review and
comment. At the May 7, 2008 meeting, the Board reviewed proposed revisions to the
Power Supply section of Title 3. Finally, at the May 21, 2008 meeting the Board
provided feedback for modifications to the rest of Title 3 that was presented to the
Board.
3. NEW INFORMATION
During our discussions with the Board additional recommendations were made which
have been incorporated into the proposed changes to Title 3.
Attached are the following documents:
1. Resolution "Adopting Amendments to the District Code Title 3, Finance and
Accounting"
2. Revised version of Title 3 with Board recommended changes incorporated
(exhibit A)
4. FISCAL IMPACT
There is no direct fiscal impact associated with this action.
5. RECOMMENDATION
Authorize the President of the Board to sign the attached Resolution Adopting
Amendments to the District Code Title 3, Finance and Accounting.
1 CNv
Mary Chap n Michael D. Holley
Administrative Services Manager General Manager
Public- Lhlhty
Resolution No. 2008 - XX
ADOPTING AMENDMENTS TO THE DISTRICT CODE
TITLE 31 FINANCE AND ACCOUNTING
WHEREAS, the Board of Directors of the Truckee Donner Public Utility District wishes to
amend the District Code Title 3, Finance and Accounting; and
WHEREAS, the District Code provides rules and regulations intended to convey a
comprehensive description of the manner in which the District operates, handles its finances
and performs its accounting; and
WHEREAS, periodically, the District Code should be reviewed and updated to conform to
District Board directives, new applicable laws and regulations and improvements; and
WHEREAS, workshops were held on March 19, April 2, May 7, and May 21, 2008 for the
Board to review and comment on the proposed changes to Title 3; and
WHEREAS, the revised version of Title 3 will bring the District's finance and accounting
policies up-to-date and will replace all preceding resolutions in Title 3.
NOW THEREFORE, BE IT RESOLVED, that the Board of Directors does hereby adopt the
amended District Code, Title 3 Finance and Accounting, Exhibit "A".
PASSED AND ADOPTED by the Board of Directors of the Truckee Donner Public Utility
District in a meeting duly called and held within said District on the 2nd day of July, 2008 by
the following roll call vote:
AYES:
ABSTAIN:
NOES:
ABSENT:
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
By
Tim F. Taylor, President
ATTEST:
Michael D. Holley, Clerk of the Board
EXHIBIT A
TITLE 3
FINANCE AND ACCOUNTING
CHAPTERS
3.01 Financial Goals
3.02 Budget Control
3.04 Auditing
3.05 Governmental Accounting Standards Board(GASB)
3.06 Electric Supply Procurement
3.08 Purchasing
3.10 Capitalization Policy
3.12 Accounts Receivable
3.16 Accounts Payable
3.20 Investments
3.24 Restricted Funds
3.32 Standby Charges and Assessment Districts
CHAPTER 3.01
FINANCIAL GOALS
Section:
3.01.01 Financial Goals
3.01.01.1 The following goals are established to promote and maintain the financial
strength of the District:
Planning Goals
• Review Water and Electric Master Plans at least every five years
• Review ten year Finance Master Plan each year
• Prepare two-year operating budget with semi-annual reviews
• Prepare ten-year Capital Improvement Plan; update annually
• Review rate structure and levels at least once every three years
• Review Financial Goals every year
Revenue Goals
• Set operating revenues to capture entire cost to provide service plus build and
maintain reserves and satisfy debt coverage ratios
• Review connection charges each year and set them to recover all costs
Review facilities fees every year
Section:
3.02.010 Budget Control
3.02.010.1 1 n 2008, for budget year 2009, and each two budget year periods thereafter,the
General Manager shall submit to the Board of Directors a draft budget in the format
approved by the Board of Directors and following generally accepted accounting standards
for utility budgets.
3.02.010.2 Budget performance will be reviewed at a Board workshop each six months
after the close of the June and December accounting periods during each fiscal year.
3.02.010.3 The General Manager shall cause to be prepared a memorandum
accompanying the semi-annual budget performance review which describes any significant
variance from planned expenditures and any projects or needs that have occurred since
adoption of the budget that were not anticipated at the time the budget was prepared and
adopted.
3.02.010.4 With respect to the capital budget, the General Manager is authorized to make
line item transfers within any one department, provided the total capital budget for that
department is not exceeded. If the General Manager determines that a capital expenditure
is necessary which will exceed that department's capital budget, he/she shall submit a
recommendation to the Board of Directors for a budget amendment.
3.02.010.5 When Department Heads request the Board to approve projects (operating or
capital), they will indicate in the description and presentation how much has been budgeted
for the project and if the costs are expected to exceed their budget, recommend where the
excess costs will be obtained.
CHAPTER 3.04
AUDITING
Sections:
3.04.01.1 Hiring of Auditors- Periodically, the Board of Directors will issue a request for
proposal for the purpose of hiring an audit firm to perform the District's annual audit.
Auditors will be requested to provide an engagement letter describing services they will
perform and a three year financial proposal. At the end of the three year period, the Board
will issue a new request for proposal, or if the Board decides to continue the services of the
current auditors, it will ask the then current auditors for a proposal to extend their services.
3.04.01.2 Audit Performance—The auditors will audit the District's records according to
generally accepted auditing standards for publicly owned utilities.
3.04.01.3 Audit Presentation—The audit firm will present the results of the annual audit
to the Board of Directors at a Board meeting in draft form. The Board may adopt the audit
3. Renewable resources are defined as non-fossil fueled electric generating
resources, including hydroelectric pursuant to Section 398.4(h) (1) of the
California SB 1305.
3.06(B) RPS Supply Target:
1. Strive to include qualifying resources to meet projected demand.
2. Assure resource portfolio will have a minimum 21% of renewable
resources by the end of 2010.
3.06(C) RPS Supply Strategies:
1. Utilize Public Benefit funds to implement projects and to supplement
appropriate capital expense projects.
2. Allocate District Western Area Power Administration (WAPA) as a
non-fossil fuel resource included in the RPS supply.
3. Strive to acquire small hydro and geothermal electric supply from
WAPA, NCPA, or UAMPS that are located within or can be
transmitted to the Sierra Pacific control area.
4. Consider contracting for geothermal generation and wind generation
backed by natural gas.
5. Find and support solar and other renewable generation opportunities
within District service area.
3.06.1 Procurement Objectives
1. Balance the need to purchase sufficient, reliable electric energy within
District RPS target and the tolerance for risk established by the Board of
Directors.
2. Provide stable electric rates to customers.
3. Preserve a supply cost advantage.
4. Provide procurement control procedures that are sufficient to indentify,
evaluate and manage risk.
3.06.2 Commodity Pricing Policy
1. The General Manager is responsible for implementing the Electric Supply
Procurement policy by overseeing the process of all rate schedule
development and ensuring that all procedures are followed consistently
and that all transactions and calculations are appropriately documented.
2. Commodity Pricing is composed of two principles with the first principle
(A) having priority over principle (B):
3.06.2(A) Direct Cost Recovery
All direct costs of providing service will be recovered in rates.
3.06.2(B) Risk Management
To the extent practicable, all risks must be insured and contract terms
General Manager shall inform the Board of this fact and recommend actions.
3.06.4(D) Competitive Process
Whenever possible, the Electric Utility Manager with the assistance from
NCPA or UAMPS or other entities approved by the Board shall obtain three
or more quotations when making a purchase or sale transaction and select
the best price from a responsible qualified bidder.
3.06.4(E) Oversight
The Electric Utility Manager shall provide an oversight role along with the
Administrative Services Manager both reporting to the General Manager:
1. The Electric Utility Manager shall perform review of portfolio
exposure, credit exposure, transaction compliance and monitor
risk limit compliance.
2. The Electric Utility Manager shall make recommendations to the
General Manager to temporarily or permanently halt transactions
with one or more counterparties, exceptions to rules and
procedures, or other operational exceptions that represent
unacceptable risk exposure.
3. The Administrative Service Manager shall review all transactions,
exceptions, and settlement payment accuracy, reporting findings
to the General Manager.
3.06.5 Authorized Transacting Products
Products allowed for electric transactions include energy, capacity,
transmission and ancillary service. Only physical transacting products are
approved by the Board. Financial products are explicitly prohibited.
Only the Electric Utility Manager,with General Manager counter signature, is
authorized to perform a District energy transaction:
1. All transactions must be committed by authorized transaction
personnel.
2. All transactions must be with approved counterparties with
executed and Board approved contracts.
3. All transactions must be with approved counterparties with
adequate available credit.
4. All transactions must be committed over recorded phone lines or
via electronic mail.
5. All transactions must be for allowed transaction products.
3.08.050 Joint Purchasing with the State and Other Public Agencies
3.08.060 Process and Procedure for Retention of Consulting Services
3.08.070 Change Orders
3.08.080 Contractor Insurance Requirements
3.08.090 Procurement Authorization During an Emergency
3.08.010 Bid Procedure for Purchase of Commodities or Equipment Over$15,000 -
Prior to issuing a purchase order for the purchase of any commodity or equipment, the
dollar value of which is fifteen thousand dollars ($15,000) or greater, the provisions of the
Public Contract Code shall be followed, as more fully described in the following sections.
3.08.010.1 When a Department Head or the authorized Buyer/Clerk determines that there
is a need to issue a purchase order the amount of which is fifteen thousand dollars
($15,000) or greater, he/she shall notify the General Manager by memorandum which
states the purpose of the purchase, the budget or work order account number to be
charged and the specification of the item or items to be purchased.
3.08.010.2 The General Manager shall review the memorandum and, if he/she approves
the request, shall cause a public notice to be published in a local newspaper of general
circulation requesting interested parties to submit sealed bids. The bids shall be publicly
opened and read at the date and time and in the place specified in the public notice.
3.08.010.3 After the bids have been opened, the General Manager shall submit the matter
to the Board of Directors with a recommendation regarding award of the purchase contract.
3.08.010.4 When calling for bids on equipment available locally, the public notice shall be
a small display ad in a local newspaper of general circulation.
3.08.010.5 The General Manager shall establish procedures to properly manage the
process of notifying bidders of the results of the purchase and to implement the decision of
the Board.
3.08.020 Procedure for Purchase of Commodities or Equipment Under$15,000- Prior
to issuing a purchase order for the purchase of any commodity or equipment, with a value
which exceeds ten thousand dollars ($10,000), but is less than fifteen thousand dollars
($15,000), the following procedures shall be followed:
3.08.020.1 The General Manager, a Department Head or the authorized Buyer/Clerk is
authorized to issue a purchase order as defined in Section 3.08.020 after having first
secured three informal telephone quotes recorded in writing. In securing the quotes, the
vendors must be asked to state any price discount and any payment discount terms that
the vendor will offer the District. In the event that three quotes cannot be obtained, the
purchaser shall provide the General Manager with a written explanation and receive the
General Manager's approval prior to issuing the purchase order.
3.08.020.2 The purchase order shall be issued to the lowest responsive vendor taking into
consideration price and payment discount terms and delivery schedule.
3.08.030.7 The General Manager shall establish procedures to properly manage the
process of notifying bidders of the results of the award and to implement the decision of the
Board.
3.08.040 Procedure for Issuance of Service Contracts Under $15,000 - Prior to
issuance of a contract for a service with a value less than fifteen thousand dollars
($15,000), the following steps shall be followed:
3.08.040.1 The General Manager shall cause plans and/or specifications to be prepared.
3.08.040.2 Three informal telephone quotes shall be secured in writing. In securing quotes,
the contractor shall be asked to state any price or payment discounts and a completion
date.
3.08.040.3 The contract shall be awarded by the General Manager to the lowest
responsive service provider taking into consideration price and completion date.
3.08.040.4 The General Manager may renegotiate and/or renew contracts upon their
expiration.
3.08.040.5 Should overruns or change orders expect to cause the service contract to
become $15,000 or greater, the General Manager shall notify the Board of Directors for its
approval to continue.
3.08.050 Joint Purchasing with the State of California and Other Public Agencies.
The District may purchase materials, equipment, supplies, information technology products
and services through the State of California procurement program and jointly with other
public agencies in accordance with the following procedures.
3.08.050.1 Notwithstanding any other provision of this Chapter, the District may purchase
materials, equipment or supplies, other than printed material, from the State of California
through its procurement program under Public Contract Code Section 10324 and jointly
with other public agencies, provided that:
3.08.050.1(A) The District approves specifications for any purchase of materials,
equipment or supplies, information technology products and services;
3.08.050.1(13)The cost of such items is fifteen thousand dollars($15,000)or more and the
purchase is approved by the Board of Directors;
3.08.050.1(C) The State or public agency has solicited or advertised for bids in a manner
which complies with the competitive bidding requirements applicable to the District; and
3.08.050.1(D) The State or public agency purchases such items at a price reasonably
expected to be lower than the District can obtain through its purchasing procedures.
3.08.050.2 The District shall reimburse the State or other public agency for any charge
made to
the District for purchasing services.
3.08.060.10 The staff committee shall meet to discuss both the Technical and Cost
Proposals and determine a short list of consultants to be interviewed by the staff
committee.
3.08.060.11 After final review of the proposals, the staff committee may determine that a
given consultant is clearly superior to the other consultants and may recommend to the GM
that interviews are not necessary. The staff committee may also determine that the
proposed scope of work or the expected cost is such that conducting interviews will not
yield significant information for the staff committee to consider and similarly recommend to
the GM that interviews are not necessary.
3.08.060.12 When interviews are to be conducted, the CAC shall contact the short-listed
consultants and schedule interviews. The date,time and duration of the interviews shall be
determined by the Department Manager in conjunction with the staff committee. The staff
committee shall also create a proposed outline and list of any questions to be posed to the
short listed consultants.
3.08.060.13 After completion of the interviews, the staff committee shall determine a
recommended consultant for presentation to the Board of Directors. This recommendation
shall be based upon the individual consultant's weighted scoring and their overall proposed
cost.
3.08.060.14 The Department Manager shall prepare a memorandum and appropriate
documentation for presentation to the Board. The memorandum shall summarize the
following:
• Work to be performed by the Consultant.
• Number of proposals received.
• Ranking of consultants on a technical basis.
• Recommended Consultant and expected cost thereof.
• If the recommended consultant is not the Number 1 ranked firm on technical
merit, the memorandum shall describe the rationale used to develop the
recommendation.
3.08.070 Change Orders - The District cannot afford to maintain a large enough
construction crew or all types of service related skills to be able to undertake all projects
and services in-house. Therefore, it relies on contractors and service providers to perform
work. These contractors and service providers perform work in accordance with plans and
specifications and based on a fixed price contract.
There are occasionally circumstances encountered after a contractor or service provider
has begun work that requires a change in the plans and specifications or scope of work
and result in a change in the contract price. These changes are generally matters that
could not be anticipated nor planned during the design and specification phase of the
project.
The contract change order is the procedure whereby plans and specifications or scope of
work and contract price can be changed after the contract is executed and work has
commenced. The Board of Directors authorizes the execution of contract change orders
contracts that exceed $10,000, or that pose risk that, in the judgment of the General
Manager, warrant more than the minimum insurance.
3.08.080.3 The General Manager shall, after consulting with the insurance broker of record
and/or an independent risk manager, specify insurance requirements in contracts he/she is
authorized to let; or, in the case of contracts that must be let by Board action, the General
Manager shall, after consulting with the insurance broker of record and/or an independent
risk manager, recommend insurance requirements to the Board of Directors.
3.08.90 Procurement Authorization During an Emergency
3.08.90.1 An "emergency' is a situation which poses an immediate risk to health, life,
property or environment. Most emergencies require urgent intervention to prevent
worsening of the situation. It is the General Manager's responsibility to take immediate
action to protect employees, customers and District property during an emergency.
3.08.090.2 During an emergency, the General Manager is authorized to repair or replace
a public facility, take any directly related and immediate action required by that emergency,
and procure the necessary equipment, services, and supplies for those purposes, without
immediate Board approval and without giving notice for bids to let contracts.
3.08.090.3 The General Manager will report to the Board of Directors within 48 hours any
and all actions taken to deal with the emergency.
3.08.090.4 If the General Manager takes any action to manage the emergency that
would otherwise require competitive bidding, the Board shall initially review the emergency
action taken not later than seven days after the action or, at its next regularly scheduled
meeting if that meeting will occur not later than 14 days after the action, and at least at
every regularly scheduled meeting thereafter until the action is terminated, to determine, by
a four-fifths vote, that there is a need to continue the action, unless the General Manager
has terminated that action prior to the Board reviewing the status of the emergency.
3.08.090.5 It is the District's intent to comply with all sections of the Public Contract Code
Section 22050 in managing emergency situations.
CHAPTER 3.10
CAPITALIZATION POLICY
Sections:
3.10.010 Procedures
3.10.020 Capitalization requirements
3.10.010 Procedures shall be followed in determining which purchases should be
capitalized or expensed in the year purchased in accordance with generally accepted
accounting practices.
Department shall promptly render a bill to the appropriate party. The miscellaneous
account bill is due and payable 30 days after the billing date.
3.12.010.3 If the bill remains unpaid after 30 days, the bill shall be considered delinquent
and shall be assessed a late charge in accordance with current District policy, and a
second request for payment shall be promptly mailed.
3.12.010.4 If the bill remains unpaid after 60 days, the General Manager shall cause
collection proceedings to commence, which may include initiation of action at Small Claims
Court.
3.12.010.5 The General Manager is authorized to act within his/her discretion to alter the
time periods set forth in this policy when a miscellaneous account customer is cooperating
with the District in resolving an unpaid bill.
3.12.020 Delinquent Accounts Receivable -At the end of June and December of each
year, the District Treasurer will have identified all delinquent accounts receivable on closed
accounts that are considered uncollectible that exist on the District's records for six months
or more. Any customer who is making payments on his/her delinquent account will not be
added to the delinquent account list until the customer stops making agreed upon
payments.
3.12.020.1 The District Treasurer is authorized to write off delinquent accounts up to 1/6%
of the annual amounts billed from the District's accounts receivable balance.
3.12.020.2 The District Treasurer will include in the monthly Treasurer's Report the details
of the accounts written off including the customer names and the dollar amounts being
written off.
3.12.020.3 Should delinquent accounts exceed the authorized limit (1/6% of the annual
amounts billed from the District's accounts receivable balance), the request for approval to
write off such accounts shall come before the Board of Directors for consideration.
CHAPTER 3.16
ACCOUNTS PAYABLE
Sections:
3.16.010 Pre-authorized Disbursements
3.16.020 Bills for Board Approval
3.16.030 Accounts Payable
3.16.010 Pre-authorized Disbursements
3.16.010.1 The District Treasurer shall be empowered to issue checks, with authorization
from the approving authority, without prior Board approval for the following items:
3.16.010.1(0)Wholesale power expenses including, but not limited to,the Northern
California Power Agency, the District's current Board approved wholesale power
supplier and Sierra Pacific Power Company. Payments may be by ACH or wire
transfer to the bank account number provided by the vendor.
3.16.010.1(P) Bid items - where the Board has authorized a bid purchase and the
invoice excluding sales tax and shipping charges is less than or equal to the
authorized contract. Amounts billed above the bid amount must be approved by the
General Manager or the Board.
3.16.010.1(0) Monthly and annual building utility expenses for telephone, garbage,
heating, sewer collection and treatment(TTSA and TSD), cable, Internet and utility
bills paid to other agencies such as electric utility bills for pump stations and wells.
3.16.010.1(R) Items approved by the Board: Any items that have been approved by
the Board at a scheduled board meeting (e.g. property and liability insurance
renewal).
3.16.010.1(S) The General Manager may approve payments required in an
unpredicted emergency situation with subsequent notification to the Board.
3.16.010.2 Upon direction of the General Manager and receipt of an appropriate, signed
authorization in accordance with Section 3.08.010 of this policy,the District Treasurer shall
be empowered to issue checks up to $15,000 and, in instances where the Board of
Directors has issued authorization for an expenditure of $15,000 or greater.
3.16.010.3 All checks issued in any of the above categories will appear in the accounts
payable check register provided in the monthly Treasurer's Report to the Board of Directors
for approval. Supporting documents will also be available for Board review in the
Administrative Services Department.
3.16.020 Bills for Board Approval - Bills which may be controversial should be listed as a
special agenda item accompanied with the General Manager recommendation.
3.16.030 Accounts Payable
3.16.030.1 Upon presentation of invoices for goods and services and other financial
obligations of the District in the format prescribed in Title 3, Chapter 3.08, Purchasing, to
the Administrative Service Department, the Treasurer shall be authorized to issue payment
for such invoices
3.16.030.2 All payments for District financial obligations shall be processed through the
District's computerized accounts payable program. Prior to issuing checks, the District's
Accounts Payable Clerk will verify the entries for accuracy including verifying that the
correct vendor has been keyed into the system; that the amount of charges are correct and
that the total of the invoice is correct; that the sales and use tax has been calculated
correctly; that the appropriate authorization appears on the invoice; that the correct work
order number and account number or account number and activity code have been
3.16.030.7(C)The Treasurer shall list on the agenda any invoice for purchases that
have not been made in accordance with the District's purchasing policies as set
forth in Title 3, Chapter 3.08, Purchasing.
3.16.030.7(D) Semi-annual budget reports showing the status of budgeted
expenditures compared to actual expenditures will be presented at a board
workshop after the close of the June and December financial records.
3.16.030.7(E) Semi-annual financial statements showing the status of all revenues
and expenditures in the format of financial statements using generally accepted
accounting principles for utilities after the close of the June and December financial
records.
CHAPTER 3.20
INVESTMENTS
Sections:
3.20.005 Local Agency Investment Fund Investments
3.20.008 Fund Transfers
3.20.010 Investment of Surplus Funds
3.20.012 Investment Policy
3.20.005 Local Agency Investment Fund Investments
3.20.005.1 Authorization has been given for the deposit and withdrawal of monies in the
Local Agency investment Fund (LAIF) in the State Treasury in accordance with the
provisions of Section 16429.1 of the Government Code for the purpose of investment as
stated therein.
3.20.005.2 Any two of the following officers or employees of the District, the President of
the Board, the General Manager or the Treasurer, may execute documents to add or
delete District accounts and authorized persons to make transfers to and from those
accounts with the LAIF.
3.20.008 Fund Transfers
3.20.008.1 The Board approved commercial bank (Bank) is requested to honor, execute
and process the District's telephonic, electronic, written or oral requests for the transfer of
funds between the accounts of the District at Bank and the Local Agency Investment Fund,
subject to such terms and conditions as may from time to time be agreed upon by the
District.
3.20.008.2 Any one of the following listed officers or employees of the District, the
meet all liquidity requirements and the third objective shall be to achieve a return on the
funds under his/her control.
In order of priority, three fundamental criteria shall be followed in the investment program:
1. Safety - Safety of principal is the foremost objective of the investment program.
Investments shall be undertaken in a manner that seeks to ensure the preservation
of capital in the overall portfolio. The objective will be to mitigate credit risk and
interest rate risk.
a. Credit Risk: The District will minimize credit risk, the risk of loss due to the
failure of the security issuer or backer, by:
i. Limiting investments to the safest types of securities.
ii. Pre-qualifying the financial institutions, broker/dealers, intermediaries and
advisers with which the District will do business (custodial risk).
iii. Diversifying the investment portfolio so that potential losses on individual
securities will be minimized (concentration of risk).
b. Interest Rate Risk: The District will minimize the risk that the market value of
securities in the portfolio will fall due to changes in general interest rates, by:
i. Structuring the investment portfolio so that securities mature to meet cash
requirements for ongoing operations, thereby avoiding the need to sell
securities on the open market prior to maturity.
ii. Investing operating funds primarily in shorter-term securities, money market
mutual funds, or similar investment pools.
2. Liquidity—In an effort to ensure that the District's portfolio will be sufficiently liquid to
meet current and anticipated operating requirements, periodic cash flow analysis will
be performed. Investments shall be made so that the maturity date is compatible
with cash flow needs and safety of principal.
3. Yield — Investments shall be undertaken to produce an acceptable rate of return
after first considering safety of principal and liquidity and the prudent investor
standard.
Investment Strategy — The portfolio will be managed to meet the District's
cash flow needs. The maximum maturity of any security will not exceed 5
years except as specifically noted below. All investment activity shall be
consistent with prudent investor standard and in accordance with the
authorized investments included under District Code 3.20.012.5.
3.20.012.3 Prudent Investor Standard As applicable to the District, the prudent investor
standard is a standard of conduct whereby any person authorized to make investment
decisions on behalf of the District acts with care, skill, prudence and diligence under the
circumstances then prevailing, including but not limited to,the general economic conditions
a. All securities transactions entered into by the District shall be conducted on a
delivery versus payment (DVP) basis.
b. Securities shall be held by an independent custodian designated by the
Treasurer and held in safekeeping pursuant to a safekeeping agreement.
c. All financial institutions which provide safekeeping services for the District
shall be required to provide reports or safekeeping receipts directly to the
Treasurer to verify securities taken into their possession.
3.20.012.5 Authorized Investments
1. The District's authorized commercial bank in an interest bearing checking or savings
account. The Treasurer is authorized to make daily deposits and withdrawals for
purposes of the safekeeping of District monies and payments of District financial
obligations.
2. Local Agency Investment Fund (LAIF) — Deposits for the purpose of investment in
the Local Agency Investment Fund of the State of California Treasury may be made
up to the maximum amount permitted by State Treasury policy.- Any LAIF
investments made by the District shall be considered to be short-term in nature
even if the LAIF has invested in individual longer-term securities. The Treasurer is
authorized to make regular transfers to and from LAIF up to the limit of transactions
established by the LAIF investment policy for purposes of meeting the District's daily
cash flow needs and earning interest on surplus funds.
3. Any other investments authorized and listed in the Government Code Sections
53600-53609. The Treasurer will consult with the Board of Directors when
recommending any of the investments within these sections other than subsections
1 and 2 above. From time to time, the Board may also consult with an investment
professional pursuant to Title 3.20.012.2 Section 1 a ii. Each investment will be
specifically authorized by the Board of Directors.
4. Bond proceeds and reserve funds will be invested only in permitted investments or
authorized investments defined in the Trust Agreement for each particular financing
which has previously been approved by the Board of Directors (Government Code
Section 53601 1).The Treasurer will consult with the Financial Advisor or Trustee on
the financing for investment recommendations to submit to the Board of Directors
for approval. The Treasurer is authorized to invest funds in a money market fund or
LAW with the Trustee pending investment of those funds in a longer-term
investment, which will be approved by the Board of Directors.
3.20.012.6 Reporting In accordance with Section 53646 of the California Government
Code, the Treasurer shall submit a quarterly report to the Board of Directors within 30 days
following the end of the quarter covered by the report. The report shall include investment
activity, including yield and earnings, and the status of cash by depository.
STANDBY CHARGES AND ASSESSMENT DISTRICTS
Sections:
3.32.010 Collection of Delinquent Assessments
3.32.020 Standby Charges
3.32.010 Collections of Delinquent Assessments - The following procedure is to be
used by the District staff and by District Counsel in connection with the collection of
delinquent assessments.
Assessments are due on November first and February first of each year, and are
delinquent on December tenth and April tenth, respectively.
Following is the procedure the District has adopted for collecting delinquent assessment
payments:
3.32.010.1 By January thirty-first and May thirty-first of each year or as soon as the county
records are available, the District Treasurer will contact the County Tax Collector's Office
and determine whether any assessments are delinquent and, if so,the amount of any such
delinquency. The District Treasurer will then immediately send, by certified mail, a friendly
collection letter, requesting payment within fifteen days,with copies to District Counsel and
to the General Manager.
3.32.010.2 If not paid within fifteen days of the friendly letter, the District Treasurer will
send, by certified mail, a demand letter. This letter will demand payment within ten days,
and will indicate that, if not paid, the matter will be referred to District Counsel for initiation
of foreclosure proceedings against the delinquent parcel. Copies of this letter will be sent
to District Counsel and to the General Manager.
3.32.010.3 If not paid within ten days of the demand letter, District Counsel will send a
letter, by certified mail demanding immediate payment and indicating that the delinquency
will be referred to Nevada and/or Placer Counties for foreclosure upon the parcel if not paid
within ten days. Copies of this letter will be sent to the District Treasurer, the General
Manager and the Board.
3.32.010.4 If not paid within ten days of District Counsel's demand letter, District Counsel
will refer the matter to Nevada and/or Placer Counties Counsel, and request that
foreclosure be initiated against the delinquent parcel. Copies of this letter will be sent to
the District Treasurer, the General Manager, and the Board. District Counsel will also send
a copy of this letter to the owner of the delinquent parcel so that the owner will be aware
that foreclosure is about to be initiated.
3.32.010.5 Approximately every thirty days thereafter, District Counsel will contact Nevada
and/or Placer Counties Counsel to ascertain that the foreclosure proceedings are going
forward on a proper schedule.
3.32.010.6 The Board may authorize a third party company who specializes in performing
Title 3: Highlights of Additional Changes
CHAPTERS:
3.08 Purchasing
• Section 3.08.010.4 stating "if the equipment or material to be purchased is not
available locally, the ad shall be placed only in the public notice section of the
newspaper"was deleted.
• Section 3.08.060.3 was changed to read "The weighting of the specific evaluation
criteria shall be included in the RFP."
• Section 3.08.070 Change Orders third paragraph was changed to read: "The
contract change order is the procedure whereby plans and specifications or
scope of work and contract price can be changed after the contract is executed
and work has commenced. The Board of Directors authorizes the execution of
contract change orders when the total cost of the change orders will be $15,000
or greater.
• Section 3.08.070.4 was added to read: "At the time of award of a contract, the
Board may pre-approve change order contingencies up to a defined percentage
of the contract or a defined dollar amount. Change order contingency authority
which has been approved by the Board, will be administered by the General
Manager up to the pre-approved limit.
• Section 3.08.090 was added to give the General Manager authority to act in an
emergency.
3.09 Capitalization Policy
• Section 3.10.020 was changed to read: "It is the District's policy that the following
procedure will be followed in determining if a purchase meets the necessary
requirements of capitalization:"
3.20 Investments
• Section 3.20.005.2 was added to read "Any two of the following officers or
employees of the District, the President of the Board, the General Manager or the
Treasurer, may execute documents to add or delete District accounts and
authorized persons to make transfers to and from those accounts with LAIF.
Sections 3.16.030 Accounts Payable, 3.20 Investments where there are references
of who can act in the absence of the Treasurer have been removed. We will bring a
separate resolution to the Board creating a new position of Assistant Treasurer whereby
the Board will appoint an individual to the position who can perform any and all duties of
the Treasurer in his/her absence.
Corrected additional formatting, grammar and punctuation problems throughout
the previous draft.
EXHIBIT A Formatted:Font: 12 pt
TITLE 3
FINANCE AND ACCOUNTING
CHAPTERS
3.01 Financial Goals
3.0Z Budget Contro Deleted:
3.04 Auditing �eleted:ing
3.05 Governmental Accounting Standards Board(GASB)
3.06 ,Electric Supply Procurement Deleted:Price of Purchased Power
3.08 Purchasing
3.10 Capitalization Policy
3.12 Accounts Receivable
3.16 Accounts Payable
3.20 Investments
3.24 Restricted Funds
.32 Standby Charges and Assessment Districts Deleted:3.2s. .contract
- Management¶
CHAPTER 3.01
-FINANCIAL GOALS Deleted:BUDGETING
Section:
3.01PI.Financial Goals Deleted:,
Deleted:
3.01.01.1 The following goals are established to promote and maintain the financial Formatted:Font: 12 pt
strength of the District: Deleted:W
Deleted:e
Planning Goals Deleted:m
• Review Water and Electric Master Plans at least every five years Deleted:p
• Review ten ear F finance Master Plan each year L
Deletes:ourf �
• Prepare two-year operating budget with semi-annual reviews Deleted:m
• Prepare en-year Capital Improvement Plan: update annually Deleted.p
• Review rate structure and levels at least once every three years
Formatted:Bullets and Numbering
• Review Financial Goals every year --�
Deleted:annually five
Revenue Goals Deleted:c
• Set operating revenues to capture entire cost to provide service plus build and Deleted:repiacementbudget
maintain reserves and satisfy debt coverage ratios Deleted:three
• Review connection charges each year and set the_,to recover all costs Deleted:s
Deleted:n
CHAPTER 3.02ti - Deleted:.olo
_BUDGET CONTROL Deleted:gadget
_ Deleted:Control
Section:
3.01010 Budget Control Deletes:1
3.02 010.1 Jn 2008 for budget year 2009 and each two budget year periods thereafter, - Deleted:1
the General Manager shall submi to the Board of Directors a draft bud et In the format Deleted:
S. �- -- --- --
g --- -------- -------- -- --- ------
approved by the Board of Directors and following generally accepted accounting standards Deleted:Annaally
for utility budgets. Deleted:cause to be prepared for
Deleted:s.io.n
3.0 010.2 Budget performance will be reviewed at a Board workshop each six months - __ Deleted:1
?'- ---
after the close of the June and December accounting periods during each fiscal year Deleted:Deleted by Resolution 9611.1
3.0?„010.3 -The General Manager shall cause to be prepared a memorandum Deletea:l
- -- -
accompanying the semi-annual budget performance revievicwhich describes any significant - ,- Deleted:quarterly budget report
variance from planned expenditures and any projects or needs that have occurred since
adoption of the budget that were not anticipated at the time the budget was prepared and
adopted.
3.03,010.4 With respect to the capital budget,the General Manager is authorized to make - Deleted:1
- ---
line item transfers within any one department, provided the total capital budget for that
department is not exceeded. If the General Manager determines that a capital expenditure
is necessary which will exceed that department's capital budget, he/she shall submit a
recommendation to the Board of Directors for a budget amendment.
Deleted:1
3.02,010.5 W hen Department Heads request the Board to approve projects(operating or Deleted:Deleted by Resolution 9611
capital) they will indicate in the description and presentation how much has been -see Section 3.16.030.7(A).
budgeted for the project and if the costs are expected to exceed their budget, recommend Deleted:¶
where the excess costs will be obtained. ¶
--
-Section Break(Continuous)- - -
__ (Minute Order 89-43,Res.9522,9611)1
Deleted:¶
CHAPTER 3.04 4
Formatted:Font: 12 pt,Not Bold
AUDITING Formatted:Font:12 pt
Formatted:Font: 12 pt,Not Bold
Sections:
,,;' Formatted:Font: 12 pt
Formatted:Font:12 pt,Not Bold
3.04.01.1 Hiring of Auditors ,Periodically,the Board of Directors will issue a request for-
Formatted:Font: 12 pt
proposal for the purpose of hiring an audit firm to perform the Districts annual audit. ' Formatted:Font: 12 pt,Not Bold
Auditors will be requested to provide an engagement letter describing services they will Formatted:Font: 12 pt
perform and athree year financial proRosai At the end of the three near penod..the Board ,% Formatted:Font: 12 pt,Not Bold
will issue a new request for proposal, or,if the Board decides to continue the services t Formatted:Font: 12 pt
the current auditors it will ask the then current auditors for a proposal to extend their\ Formatted:Font:12 pt,Not Bold
service$. - -- -- ---- -- - -- --- -- - - - Formatted:Font: 12 pt
Portfolio Standard (RPS) Code Section 7.83.
Formatted:Font: 12 pt
3 06(A) RIPS Supply Objectives: Formatted:Bullets and Numbering
1. Maintain reliable overall energv supply portfolio
2 Minimize adverse impact of acauirina new energy resources on customer
electric rates.
3 Renewable resources are defined as non-fossil fueled electric generatin
resources including hydroelectric pursuantto Section 398.4(h)(1)ofthe
California SB 1305.
3 06(B) RPS Supply Target:
1 Strive to include qualifying resources to meet projected demand. Formatted:Buuets and Numbering
resource ortfolio will have a minimum 21% of renewable
2. Assure
resources by the end of 2010.
3.06 RIPS Supply Strategies: Formatted:Bullets and Numbering
1 Utilize Public Benefit funds to implement projects and to supplement,
appropriate capital expense projects.
2 Allocate District Western Area Power Administration (WAPA) as a
non fossil fuel resource included in the RPS suppiv.
3 Strive to acquire small hydro and geothermal electric supply from
WAPA NCPA or UAMPS that are located within or can be
transmitted to the Sierra Pacific control area.
4 Consider contracting for geothermal generation and wind generation
backed by natural gas.
5 Find and support solar and other renewable generation opportunities
within District service area.
3 061 Procurement Obiectives Formatted:Bullets and Numbering
1 Balance the need to purchase sufficient reliable electric energv within
District RPS target and the tolerance for risk established by the Board of
D i rectors.
2. Provide stable electric rates to customers.
3 Preserve a supply cost advantage.
4 Provide procurement control procedures that are sufficient to indentify,
evaluate and manage risk.
3 06 2 Commodity Pricing Policy Formatted:Bullets and Numbering
1 The General Manager is responsible for implementing the Electric Supply
Procurement policy by overseeing the process of all rate schedule
development and ensuring that all procedures are followed consistently
and that all transactions and calculations are appropriately_documented.
2 Commodity Pricing is composed of two principles with the first principle
the District Board of Directors to meet long-term portfolio planning
obectL fives.
3 06 4(C) Portfolio Performance and Value Reportina
The Electric Utility Manager shall prepare performance reports containing
analysis of physical and financial positions of all electric contracts. Reports
shall be annual) unless the ratio of the market value of a contract falls
outside the risk limits rescribed by the District Board of Directors then the
General Manager shall inform the Board of this fact and recommend actions.
3 06 4(D) Competitive Process
Whenever possible the Electric Utility Manager with the assistance from
NCPA or UAMPS or other entities approved by the Board shall obtain three
or more notations when making a purchase or sale transaction and select
the best price from a responsible qualified bidder.
3 06 4(E) Oversight
The Electric Utility Manager shall provide an oversight role along with the
Administrative Services Manager both reporting to the General Manager:
1 The Electric Utility- Manager shall perform review of portfolio' Formatted:Bullets and Numbering
exposure credit exposure transaction compliance and monitor
risk limit compliance.
2 The Electric Utility Manager shall make recommendations to the' {ormae etsNumr
General Manager to temporarily or permanently halt transactions
with one or more counterparties exceptions to rules and
procedures or other operational exceptions that represent
unacceptable risk exposure.
3 The Administrative Service Manager shall review all transactions,
Formatted:Bullets and Numbering
exceptions and settlement payment accuracy reportlnq findings
to the General Manager.
3 06 5 Authorized Transacting Products
Products allowed for electric transactions include energy, capacity,
transmission and ancillary service Only- physical transacting products are
approved by the Board Financial products are explicitly prohibited.
Only the Electric Utility Manager,with General Manager counter signature,is
authorized to perform a District energy transaction:
PURCHASING
Sections:
3.08.010 Bid Procedure for Purchase of Commodities or Equipment Over- Formatted:Right: o° —)
$15,000
3.08.020 Procedure for Purchase of Commodities or Equipment Under
�$15,000 Deleted:
3.08.030 Bid Procedure for Issuance of Service Contracts Over$15,000 Formatted:Font:12 pt
3.08.040 Procedure gf Issuance of Service Contracts Under$15,000 Formatted:Indent:Left: V
3.08.050 Joint Purchasing with the State and Other Public Agencies Deleted:o
3 08 060 Process and Procedure for Retention of Consulting Services
3 08 070 Change Orders
3 08 080 Contractor Insurance Requirements
3 08 090 Procurement Authorization During an Emergency
3.08.010 Bid Procedure for Purchase of Commodities oSEquipment Over$15,000,- , -
Formatted:Font: 12 pt,No
z underline
Prior to issuing a purchase order for the purchase of any commodity or equipment the Deleted.f
dollar value of which is fifteen thousand dollars($15,000)or greater,the provisions of the
Public Contract Code shall be followed, as more fully described in the following sections.
Deleted:o
Formatted:Font:12 pt
authorized Buyer/Clerk determines that
Deleted: item
3.08.010.1 When apepartmentpead or the
is a need to issue a purchase order the amount of which is ifteen thousand dollars Deleted:exceeds
($15,000) or Greater, he/she shall notify the General Manager by memorandum which' Deleted.d
states the purpose of the purchase, the budget or work order account number to be Deleted:n
charged and the specification of the item or items to be purchased. Deleted:exceeds
3.08.010.2 The General Manager shall review the memorandum and, if he/she approves Deleted.the
the request, shall cause a public notice to be published in p local newspaper of general
circulatioltrequesting interested parties to submit sealed bids. The bids shall be publicly Deleted:Sierra Sun
opened and read at the date and time and in the place specified in the public notice.
3.08.010.3 After the bids have been opened,the General Manager shall submit the matter head:r hselling
t for proprepry�
to the Board of Directors with a recommendation regarding award of the purchase contract. matDeleted:the
3.08.010.4 When calling for bids on equipment available locally,.the public notice shall be , Deleted:Sierra Sun
Deleted:If the equipment or material
a small display ad in_local newspaper of general circulation to be purchased is not available locally,
the ad shall be placed only in the public
3.08.010.6 The General Manager shall establish procedures to properly manage the notice section of the newspaper.¶
==Section Break(Continuous)====__
process of notifying bidders of the results of the purchase and to implement the decision of Formatted:Font: 12 pt,No
the Board. underline
Formatted:Font: 12 pt
3.08.020,Procedure for Purchase of Commodities or Equipment Under$15,000;Prior) Deleted:the dollar value of
to issuing a purchase order for the purchase of any commodity or equipment,with a values,- t Deleted:five j
which exceeds tee,thousand dollars ( 10 00 , but is less than fifteen thousand dollars Deleted.$5,000 —j
3.08.0304If the service to be contracted is of a nature that will Itely attract bids from local Deleted:4
service providers. the public notice shall be in small display ad form in a local newspaper Deleted:contractors
of general circulation_In addition,,advertisements or notices maybe made inappropriate Deleted:the
trade journals and depending on the scope of the project copies of bid documents will be Deleted:Sierra Sun.
sent to local plan room libraries. If the project Is not likely to�ttract local bidders,the ad Is Detetea:the Rant will place
to be placed only in the public notice section of the newspaper and in appropriate trade Deleted:the
OUP rnals 'Deleted:will nd
3.08.030,�After the bids have been opened,the General Manager shall submit the matter Deleted:s
to the Board of he
for approval with a recommendation regarding award of the
service contract. This recommendation will include the bid award amount and a not to
exceed amount for change orders to be authorized by the General Manager.
3.08.030,,Z The General Manager shall establish procedures_ to properly manage the Meted:s
process of notifying bidders of the results of the award and to implement the decision of
the Board.
3.08.040,procedure for Issuance of Service Contracts Under $15,000, - Prior to . _ - Deleted:
issuance of a contract for a service with a value Jess than fifteen thousand dollars Formatted:Font:12 pt,No
underline
($15,000), the following steps shall be followedy Deleted:of
3.08.040.1 The General Manager shall cause plans and/or specifications to be prepared. Formatted:Font: 12 pt
Deleted:the dollar amount of which is
3.08.040.2 Three informal telephone quotes shall be secured in writing. In securing
Deleted:.
quotes, the contractor shall be asked to state any price or payment discounts and a
completion date. Deleted;¶
3.08.040.3 The contract shall be awarded by the General Manager to the lowest Meted:contractor
responsive service provideraking into consideration price and completion date.
3.08.040.4 The General Manager may renegotiate and/or renew contracts upon their
expiration.
3.08.040.5 Should overruns or chan a orders-expect to cause the service contract to Formatted:Font:1z pt,sold
become$15 000 or greater the General Manager shall notify the Board of Directors for its Formatted:Font: 1z pt
annrOVBI t0 COntlnUe. Deleted:¶
3.08.050 Joint Purchasing with the State of California and O$her Deleted:(Reso.961t)T
blic agencies. ---- 1
The District may purchase materials, equipment,supplies,information technology products Deleted:o
and services through the State of California procurement program and jointly with other Deleted:p
public agencies in accordance with the following procedures. Deleted:a
3.08.050.1 Notwithstanding any other provision of this Chapter,the District may purchase
materials, equipment or supplies, other than printed material, from the State of California
through its procurement program under Public Contract Code Section 10324 and jointly
with other public agencies, provided that:
3 08 060 6 The GM and Department Manager shall finalize the proposal evaluation Formatted:Font: 12 pt
criteria and the weighting to be given to each component. Formatted:Font:(Default)Arial
3 08 060 7 After receiving proposals then shall be held in the custody of the CAC. The Formatted:Font:12 pt
CAC shall distribute copies of all Technical Proposals to the staff committee members for Formatted:Font:(Default)Arial
Individual review. Formatted:Font:(Default)Arial,
Not Bold,Not Italic
3,08.060.8 The staff committee shall then hold a meeting to discuss the various proposals Formatted:Font:(Default)Anal
and to rank the consultants based upon technical merit using the approved evaluation Formatted:Font:12 pt
criteria. Formatted:Font:(Default)Arial
3 08 060 9 At the same meeting after completion of the technical rankings, the Cost Formatted:Font:12 pt
Proposals shall be opened and reviewed by the staff committee members. This review Formatted:Font:(Defy°It)Arial
shall ensure that the man hours hourly rates services and indirect costs given m the Cost Formatted:Font.(Default)Arial,
Proposal correspond to the level of effort described in the Technical Proposal.and to the Not Bold,Not Italic
level of effort expected by the District to perform the anticipated work.
� ` Formatted:Font:(Default)Arial
Formatted:Font:12 pt
3.08.060.10 The staff committee shall meet to discuss both the Technical and Cost \`;, , Formatted:Font:(Default)Arial
Proposals and determine a short list of consultants to be interviewed by the staff ! Formatted:Font:(Default)Arial,
'I Not Bold,Not Italic
committee. r''
��� '.' Formatted:Font:(Default)Arial
A.08.060.11 After final review of the proposals the staff committee may determine that a ;d;,. Formatted:Font:(Default)Aria],
Not Bold,Not Italic
given consultant is clearly superior to the other consultants and may recommend to the Formatted:Font:(Default)Arial
GM that interviews are not necessary. The staff committee may also determine that the ', Formatted:Font: 12 pt
proposed scope of work or the expected cost is such that conducting interviews will not `, ` '' Formatted:Font:(Default)Arial
yield significant information for the staff committee to consider and similarly recommend to Formatted:Font:(Default)Arial,
the GM that interviews are not necessary. Not Bold,Not Italic
Formatted:Font:(Default)Arial
3.08.060.12 When interviews are to be conducted the CAC shall contact the short-listed ` Formatted:Font:(Default)Arial,
consultants and schedule interviews. The date time and duration of the interviews shall Not Bold,Not Italic
be determined by the Department Manager in coniunction with the staff committee. The „ Formatted:Font:(Default)Arial
staff committee shall also create a proposed outline and list of any Questions to be posed Formatted:Font: 12 pt
to the short listed consultants. Formatted:Font:(Default)Arial
Formatted:Font: 12 pt
3 08 060 13 After completion of the interviews, the_staff committee shall determine a Formatted:Font:(Default)Arial
recommended consultant for resentation to the Board of Directors. This recommendation Formatted:Font: pt
shall be based upon the individual consultant's weighted scoring and their overall Formatted:Font:(Default)Arial
proposed cost.
Formatted:Font:12 pt
.3.08.060.14 The Department Manager shall prepare a memorandum and appropriate Formatted:Font:(Default)Arial
documentation for presentation to the hoard. The memorandum shall summarize the Formatted:Indent:Left: 0.5",
Tabs: 0.75",List tab+Not at 1.25"
following:
Formatted:Bullets and Numbering
• Work to be performed by the Consultant Formatted:Font: 12 pt
Number of proposals received:. -I Formatted:Font:(Default)Arial
• Ranking of consultants on a technical basis. Formatted:F°nt:12 pt
• Formatted:Font:(Default)Arial
3 08 070 5(A) A memorandum should be prepared setting forth the precise
circumstances iustifying the change in plans and specifications or scope of work
and should iustify the change in contract price.
3.08.070.5(B) The memorandum should be signed by the Department Head and
General Manager and forwarded within 48 hours to each Director.
3 08 070 5(C)A contract change order should be prepared for consideration by the
Board of Directors at its next regular meeting or at a special meeting if on-;-called.
3 08 080 Contractor Insurance Requirements- It is the policy of the District to require Formatted:Font:12 pt,No
r underline
contractors and service providers performing work for the District to maintain appro p iate Formatted:Font:12 pt
insurance naming the District as an additional Insured.
3 08 080 1 The form of insurance shall be broad form comprehensive general liability
which includes coverage for bodily iniury, property damage and products-completed
operations: automobile liability where applicable: workers compensation. AAAA.; ally,
service providers may be required to include errors and omissions coverage.
3.08.080.2 The minimum amount of insurance shall be $2 000 000.per occurrence and Formatted:Font: 12 pt,Font color:
Black
$4 000 000 in the aggregate The General Manager shall consult with the insurance Formatted:Font:12 pt
broker of record and/or an independent risk maniaaer for advice on the insurance
requirements for contracts that exceed M 000 or that pose risk that, in the Iudgment of
the General Maria er warrant more than the minimum insurance.
3 08 080 3 The General Manager shall after consulting with the insurance brokerof record Deleted:4
and/or an independent risk manager, specify insurance requirements_in contracts he/she is Formatted:Font: 12 pt,Bold
authorized to left or, in the case of contracts that must be let by Board action,the General Formatted:Font: 12 pt
Manaaer shall after consulting with the insurance broker of record and/or an Independent Formatted:Outline num702,1.
risk manager, recommend insurance requirements to the Board of Directors. ;, L ve03, L+Start at 90+ StylLeft+Aligned at: 0"+T
+Indent at: 1"
3 08 90 Procurement Authorization During an Emerg My fFormanted:Indent: First line: 0"
Formatted:Font:12 pt,Not Bold
3.08.90.1. An"emergency" is a situation which poses an immediate risk to health, life, ` Formatted:Font:12 pt
Property or environment Most emergencies require urgent intervention to prevent Formatted:Font:12 pt,Not Bold
worsening of the situation It is the General Managers responsibility to take immediate Formatted:Font: 12 pt
action to protect employees customers and District property during an emer enc Formatted:Font; lz pt,Not Bold
Formatted:Font:12 pt
3 08 090 2 During an emergencv the General Manager is authorized to repair or replace Formatted:Font:12 pt,Bold
a ublic faciliti.Aake any directt related and immediate action re uiieu u that emerciency,
Formatted:Font:12 pt
and procure the necessary equipment services and supplies for those purposes,without Formatted:Font: 12 pt,Not Bold
immediate Board approval and without giving notice for bids to let contracts. Formatted:Font: 12 pt
3.08.090.3 The General Mana er will report to the Board of Directors within 48 hours
Formatted:Font:12 pt,Not Bold
------ --------------- Formatted:Font:12pt
any and all actions takMto deal with the emergency.
Formatted:Font:12 pt,Not Bold
Formatted:Font: 12 pt
6. In the event that a urchase is made for multi le "like or similar" items that' Formatted:Bullets and Numbering
Individually are of lesser value than the minimum cost listed, but collectively are
reater than the minimum cost the Items may be capitalized. Formatted:Font: 12 pt
Deleted:(Res.2006-20)¶
CHAPTER 3.12
ACCOUNTS RECEIVABLE
Sections:
Deleted:Sundry
3.12.010 .Miscellaneous Account Billings
3.12.020 Delinquent Accounts Receivable
3.12.010 Miscellaneous Account Billings,-A miscellaneou account is a bill rendered Deleted:Sundry
by the District to a party to whom the District has rendered a service or provided a good for Formatted:Font: tz pt,Bold
which the District charges a fee but shall not be any service or good which is billed to a Formatted:Font: 12 pt
customer of the District through the normal monthly utility billing system. Deleted:SundryFormatted:Font: iz pt,No
It is the policy of the District to protect the assets of the District by promptly issuing bills for underline
goods or services rendered, and by following well established follow-up procedures to
insure that bills are paid in a timely manner.
3.12.010.1This policy shall apply to the billing and collection of misceilane�ccounts. Deleted'
Deleted:sundry
3.12.010.2 y0en any pepartment of the District notifies the Administrative Services Deleted:
Department that a billable service or good has been provided,the Administrative Services Deleted:d
Department shall promptly render a bill to the appropriate party. The miscellaneous
Deleted:sundry
account bill is due and payable Mdays after the billing date. Deleted:19
3.12.010.3 Jf thetill remains unpaid after 30 days,the bill shall be considered delinquent Deleted:
and shall be assessed a late charge bpromptly accordance
mailed.with current District policy, and a Deleted:B
second request for payment
�3.12.010.4,If the bill remains unpaid after 60 days, the General Manager shall cause Deleted:3.12.010.a Deleted by
Resolution 9611.1
collection proceedings to commence,which may include initiation of action at Small Claims ¶
Deleted:5
Court.
3.12.010.1 The General Manager is authorized to act within his/her discretion to alter the Deleted:s
time periods set forth in this policy when a miscellaneous.account customer is cooperating Deleted:Sundry
with the District in resolving an unpaid bill. Deleted:¶
3.12.010.7 Deleted by Resolution
3.12.020 `Delinquent Accounts Receivable_-At the end of June and December of each 9611.¶
year, the District Treasurer will have identified all delinquent accounts receivable on Minute Order 8944,Reso9611)¶
closed accounts that are considered uncollectible that exist on the District's records for six Formatted:Font:12 pt,No
Anv customer who is makina payments on his/her delinquent account will underline
months or more.
makina agreed
not be added to the delinquent account Ilst until the customer stops upon Formatted:Font:12 pt
3.16.010.1(Fk Employee benefits Previously approved by the Board including: Deleted:
------------
P p _p y -- Deleted:;
,deferred compensation de osit; pension a merits (401a 457 and CaIPERS); �
,vision reimbursements and any other payment or reimbursement pursuant-to-the Deleted:
District's agreement with the International Brotherhood of Electrical Workers,Local Deleted:first day hospital deductible
1245 and employee benefits authorized in the District's Code 4 Personnel for reimbursement;
management/exempt employees.
3.16.010.1(GI Expense checks-advances for meetings, seminars, conferences, Deleted:
- - - -
etc., for staff, General Manager and Board of Directors, Reimbursement for Deleted:members
mileage and approved out of pocket expenses in accordance with the Districts Title
4 expense reimbursement policy.
3.16.010.1 ftinsurance- life, health, disability and dental premiums. Deleted°
3.16.010.1(% Payroll_ - employee checks, payroll transfers, meals, union dues, - Deleted:
employee savings deductions, workers compensation insurance. payroll tax Deleted:statecompensaGon
withholding, employer taxes and any other employer payroll obligations. Deleted:
stta eunlenployDmlentt,,personal income
miscellaneous employee payroll
�3.16.010.1(KIPostage- Postage including tamps, trust fund, postage meter and deductions
bulk mailing permit deposits. ', Deleted:3.16.010.1(J) Pettycash
-
reimbursement of fund.¶
3.16.010.1(LX_Repayment of internal loans approved by the Board (journal entry Deleted:
only; no actual check). Deleted:Permit No.1,
Deleted:
3.16.010.1 ftLoans-Repayment of loans that have been approved by the Board Deleted:Tah�Dwnnerintro fund
of Directors. Where practicable,the payment will,be sent by ACH or wire transfer low
to the lending institution on or before the payment due date. Deleted:
Deleted:actually
3.16.010.1(N) zState Board of Equalization - sales tax, use tax and energy Deleted:red —�
surcharges collected. Deleted:
3.16.010.1(0)Wholesale power expenses including,but not limited to,the Northern
California Power Agency, the District's current Board app roved wholesale power
supplier and Sierra Pacific Power Company. Payments may be by ACH or wire
transfer to the bank account number provided by the vendor.
3.16.010.1(P),Bid items-where the Board has authorized a bid purchase and the Deleted:
invoice excluding sales tax and shipping charges. is Jess than or equal to the Deleted:isthesamedollaramount
authorized contract. Amounts billed above the bid amount must be approved by the Formatted:Font:12 pt,Font color:
General Manager or the Board_
Formatted:Font:12 pt
3.16.010.1(Q)Monthly and annual building utility expenses for telephone,garbage, Deleted:or
heating,sewer collection and treatment(TTSA and TSD) cable. Internet and utility i Deleted:¶
bills paid to other agencies such as electric utility bills for pump stations and wells.
3.16.010.1(R)Jtems approved by the Board- Any items that have been approved by Ueieted: Deleted by Resolutlon set 1
the Board at a scheduled board meeting (e.g property and liability insurance
invoices_match,that the invoices have been properly processed and that the expenditures _ Deleted:warrant register
have been made in accordance with the District's purchasing procedures. The Treasurer
then authorizes the payment ACH or wire transfer of funds using a secure program linked
to the District's bank account.
A.16.030.6 Jn the event that a manual check needs to be issued outside of the automated Deleted:3.16.030.5 The Treasurer
__ -- __ _ _ - - or General Manager shall then process
check run process, the check will require two signatures. The two can be an signatures the checks through the Districts
two Board authorized checking account signatures., g automated check signing machine
, using the facsimile signature of either
the Treasurer or the General Manager.
3.16.030.7 At the second regulgWeeting of each month held by the Board of Directors, The automated check signing machine
_ _ shall be one that allows for a removable
4he Board will be presented with the following reports facsimile plate which will be kept locked
up when not in use.The machine will
also require two keys to activate;the
A.16.030.7(A)(1) Accounts payable check register showing all of the checks issued ;', two keys will be kept by two different
for the accounting period being presented. The register shall show the date of the ;� employees.¶
check, the check numbers issued,the vendor names and the amount of the checks_ ; ° Deleted:
Deleted:regular weekly check run
3.16.030.7(A)(2) Statement of the general fund showing the beginning checking
account balance, the categories of cash received by the District during the month,a [Deleted:Individual Directors,the
eneral Manager and the District
+Summary list of the cash disbursements made dunn_g the month any authorized °,,' reasurer shall be authorized to sign
transfers inor out of the general fund and the ending balance at the end of the n the Districts checking accounts.¶
,,u' Deleted:
month.
�' Deleted:monthly business
3.16.030.7(A)(3) Investment report showing the status of the District restricted Deleted::
funds. Deleted.¶
Deleted:3.16.030.7(A)The Board
will be presented with the following
3.16.030.7(A)(4) Fund status report showing the location of all District funds and reports:¶
the amount on deposit at each financial institution or organization. Deleted:4
Deleted:
A.16.030.7(B)=The details of all checks issued and invoices paid shall be available Deleted:3.16.030.7(A)(5) Monthly
for review by any Director in the Administrative Services Department. The Board budget report showing the status of
shall officially authorize payment of all disbursements that have been made by actual expenditures.1 s the budgeted expenditures compared to
res.¶
Treasurer and presented on the accounts payable check register at a board s.1s.o3o7(a)(s) Monthly financial
meeting, monthly. statement showing the status of all
revenues and expenditures in the
3.16.030.7(C)The Treasurer shall list on the agenda any invoice for purchases that format of financial statements usinggenerally accepted accounting
have not been made in accordance with the District's purchasing policies as set ¶inciplesforutilities.¶
forth in Title 3, Chapter 3.08, Purchasing. Deletes:
.
3 16 030 7(D) Semi-annual budget reports showing the status of budgeted Deleted:the monthly business
_-___- meeting.
expenditures compared to actual expenditures will be presented at a board Formatted:Font:lz pt,Bola
workshop after the close of the June and December financial records. Formatted:Font: 12 pt
3 16 030 7(E)Semi-annual financial statements showing the status of all revenues Formatted:Font:1! pt,Bold
and expenditures in the format of financial statements using generally accepted Formatted:Font: 12 pt
accounting principles for utilities after the close of the June and December financial
records.
- Formatted:Font: 12 pt
purposes of this policy. Deleted: --)
Deleted:
3.20.008.3 The District hereby ratifies and confirms the acts of its officers, agents or, Deleted:r
employees in heretofore requesting transfers of funds from this District's accounts with the Deleted:b
Bank by wire or comparable transfer together with any acts performed in relation hereto. Deleted:
Deleted:b
3.20.008.4 That the Clerk of the District is hereby authorized and directed to-execute Deleted:b
acknowledge and deliver a certified copy of the,Resolution related hereto to thepank and ,' Deleted:b
any other person or agency which may require copies, and that the certification of the Deleted:b
(Secretary) Clerk as to the signatures of the above named officers will be binding on this „'f, ' Deleted:tl
District. „ ' (Resolution 9016,9526,9611)¶
,`'
Deleted:
3.20.008.5 That the Bank is authorized to act upon this policy until written-notice of the ;,;', Formatted:Font: 12 pt,No
revocation thereof by a resolution duly adopted by the Board of Directors of this District is ';' ;; underline
delivered to thepank, such revocation in no way to affect the obligations of this District to '," Formatted:Font: 12 pt
the frank incurred pursuant to the terms of this policy prior to receipt by theBank of such ,',`, Deleted:20.010.1 Deleted by Resolution
notice or revocation. 9611.1
3.20.010.2 Deleted by Resolution
�� 9611.1I
3.20.010 Jnvestment of Surplus Funds. - Deleted:3.20.010.3
The,District Treasurer shall invest surplus funds, both restricted and general,pursuant to ,
Deleted:Manager and
the District's Investment Policy(District Code 3.20.12)_ A regular accounting of all fund I°vlev tFuned:in hertherf Local
lAgency6
activities shall be presented to the Board of Directors in the monthly Treasurers Report_ Deleted:(Resolution 7911.96 ... 7
Formatted:Font:(Default)Arial
r3.20.012 jnvestment Policy. Formatted:Font: 12 pt
3.2Q,012.1 Inves., tment uthorit In accordance with Section 53600 et seq. of the
Deleted:
Government Code of the State of California, the authority to invest public funds is Tt, Formatted 8
expressly delegated to the Board of Directors for subsequent delegation to the Treasurer. r�`1`\\ Formatted:Font: 12 pt
The Treasurer of the District receives direction and authority to invest any and all District Deleted:2
funds from the Board of Directors of the District. Formatted ... 9
�,, Formatted:Font: 12 pt
3.20,,,012.2,Statement of Obiective Per section 53600.5 of the California Government Deleted:NVESTMENT
Code, the primary objective of the Treasurer shall be to safeguard the principal of the ', Formatted 10
funds under his/her control when investing public funds. The secondary objective shall be P, 'ol Formatted:Font: 12 pt
to meet all liquidity requirements and the third objective shall be to achieve a return on the °;; '''
Deleted:UTHORITY
funds under his/her control. Formatted ...fill_
�,,,
In order of priority,three fundamental criteria shall be followed in the investment program: Formatted:Font: 12 pt
, Deleted:
1. Safety - Safety of principal is the foremost objective of the investment program.
Investments shall be undertaken in a manner that seeks to ensure the preservation Deleted:TATEMENatbed
T OF 13
of capital in the overall portfolio. The objective will be to mitigate credit risk and Formatted:Font: pt
interest rate risk.
.- - Formatted:Indent: Left: 0.25"
a. Credit Risk: The District will minimize credit risk, the risk of loss due to the Formatted (141
�Jailure of the security issuer or backer, by: {Formatted:Font: 12 pt
^ Formatted:Font: 12 pt
i. Limiting investments to the safest types of securities. Formatted:Indent: Left: os°
be allocated to the various funds or accounts based on their respective
participation and in accordance with generally accepted accounting
principles.
The Treasurer may invest in any security authorized for investment under the
California Government Code, subject to the limitations described herein:
1. Maturity Limitations—
a. The aggregate maturity of the total portfolio must not exceed five (5) years
for the general operating funds of the District.
b. Funds which represent debt service reserve funds may be invested up to a
term of ten years,as long as the period invested does not exceed Jhe term of Deleted:tnat of
the debt repayment.
c. Investments of restricted funds held for the Donner Lake Assessment District
that are not expected to be needed to pay debt service on the SRF loan may
be invested up to the term of the SRF loan.
d. Construction funds may be invested to mature on or before the date funds
are expected to be needed for construction purposes.
2. Investment Transactions — the purchase of any investment other than those
purchased directly from the issuer shall be, to the extent possible, from a firm
designated as a Primary Dealer by the Federal Reserve of New York.
3. Sale of Securities — Securities may be sold to provide needed liquidity, to
restructure the portfolio to reduce risk or to increase the expected return of the
portfolio. In no instance shall a sale of securities be used for speculative purposes.
All sales are to be reported to the Board on a monthly basis.
4. Prohibited Investments — Prohibited investments include inverse floaters, range
notes, interest only strips derived from a pool of mortgages (Collateralized
Mortgage Obligations), and any security that could result in zero interest accrual if
held to maturity. (Zero interest accrual means the security has the potential to
realize zero earnings depending upon the structure of the security. Zero coupon
bonds and similar investments that start below the face value are legal because
their value does increase.)
5. Safekeeping
a. All securities transactions entered into by the District shall be conducted on
a delivery versus payment(DVP) basis.
b. Securities shall be held by an independent custodian designated by the
Treasurer and held in safekeeping pursuant to a safekeeping agreement.
c. All financial institutions which provide safekeeping services for the District
shall be required to provide reports or safekeeping receipts directly to the
Treasurer to verify securities taken into their possession.
Formatted:Font:12 pt
Deleted:Res.200633,2007-34 j
- Deleted:4
CHAPTER 3.24 ¶
RESTRICTED FUNDS Formatted:Indent: Left: 0.5"
,
Formatted:Indent:Left: 0.5"
" Formatted:Font: 12 pt
Sections:
Deleted,'s
3.24.010 Restricted Funds Deleted:(Resolution 8817,9611)¶
3.24.010.1 The Board of Directors will direct staff when monies collected by the District are Deleted:¶
CHAPTER 3.281
to be considered as restricted funds.
_CONTRACTS MANAGEMENT
¶
3 24 010 1 (A) Board Designated Restricted Funds are those funds restricted by' ¶
Board action and which the Board can change the purpose-of the designation at ¶ections:¶
3.28.010_Change Ordersl
any time. 3.28.020-Contractor Insurance
Requirements¶
3.24.010.1 (B) Restricted Funds are those funds that are restricted by contract ors ¶
a reement with the Distract such as a loan reserve fund. Deleted•3.28.010 ChanaeOrders-
TheTruckee Donner Public Utility
District cannot afford to maintain a
3.24.010.2 Restricted funds will be invested pursuant to the District's investment policy as ; large enough construction crew to be
able to undertake all projects in-house.
described in Chapter 3.20, Investments. Therefore,it relies heavily on
contractors to perform work. These
contractors perform work in
3.24.010.3 All interest earned upon said restricted funds shall adopt a character of and accordance with plans and
become part of the specific restricted account unless otherwise directed by the Board of ` , specifications and based on afixed
Directors. In the case of loan reserve funds whos balances are greater than the reserve s price contract.¶
requirement, the surplus funds may be used to offset the rind al and interest a ments ,; There
ae occasion ntheallycircumices
field after a
on the loan.
contractor has begun work that require
� a change in the plans and
' specifications or scope of work and
3.24.010.4 Expenditures from restricted funds shall be authorized by the Board of result in a change in the contract price.
i�
Directors. From time to time,the Board may pre-approve transfers from restricted funds in These changes are generally matters
that could not be anticipated nor
advance that pertain to specific projects or activities. planned for during the design phase of
the project.¶
3.24.010.6 The District's Treasurer will include a monthly report on the activity of the
The contract change order is the
restricted funds accounts along with the monthly Treasurer's Report. �� procedure whereby plans and a specifications or scope of work and
j contract price can be changed after the
contract is executed and work has
commenced. The Board of Directors
VT CHAPTER 3.32 authorizes the execution of contract
change orders.¶
4
STANDBY CHARGES AND ASSESSMENT DISTRICTS Most contract change orders are such
that their consideration by the Board
can waft for a regular Board meeting.
However,under certain circum .. 15
Sections:
Deleted:(Resolutxxi 9031,9611)¶�
3.32.010 Collection of Delinquent Assessments Deleted:
3.32.020 Standby Charges Formatted:Font; 12 pt,No
underline
3.32.010 Collections of Delinquent Assessments.- The following procedure is to be ,_ Formatted:Font: 1z pt
General
direct staff to
repare an
dated
st of
charges. Thereafter, the assessed electric andlwater standby charges Threcords lsha I
unimproved parcels to be
be pre red red in a format acceptable to both Nevada and Placer Counties and shall be
submitted to them before their scheduled deadline.The assessments will then appear on
the annual property tax bills sent out by Nevada and Placer Counties. Nevada and Placer
Counties will then act as the collection agents for the assessments and will forward
payment to the District pursuant to county policy.
Deleted:(Resolution 9611)1
■
Formatted•Font:(Default)Arial
3.06.010.1(C) In no event shall any single contract entered into under authority of this
policy extend for a period of greater than three months.
3.06.010.1(D) Prior to executing the contract, the Power Supply Engineer shall submit his
recommendation to the General Manager of the District. After securing approval from the
General Manager, the Power Supply Engineer is authorized to execute the contract.
(Reso 9720,0317)
Mary Chapman 3/21J2008 5:33:00 PM
Page 23:[6]Deleted
ent Fund,
in either the Local Agency Investm approved b o o
the Board of Directors orrsand yield
investments which are allowable bylaw and pp Y
the maximum return to the District. 3/21/2008 5:32:00 PM
Page 23:[7]Deleted Mary Chapman
(Resolution 7911. 9611)
Page 23:[8]Formatted
Mary Chapman 6/27/2008 11:07:00 AM
Font: 12 pt, No underline
Mary Chapman 6/27/2008 11:07:00 AM
Page 23:[9]Formatted
Font: 12 pt, Bold, No underline 6/27/2008 11:07:00 AM
Page 23:[10]Formatted Mary Chapman
Font: 12 pt, Bold, No underline
Page 23: [11]Formatted
Mary Chapman 6/27/2008 11:07:00 AM
Font: 12 pt, Bold, No underline
Mary Chapman 6/27/2008 11:07:00 AM
Page 23.[12]Formatted
Font: 12 pt, Bold, No underline
Page 23:[13]Deleted
Mary Chapman 5/15/2008 9:34:00 PM
TATEMENT OF OBJECTIVES 6/27/200811:14:00 AM
Page 23:[14]Formatted Mary Chapman
Indent: Left: 0 . 5", First line: 0 . 19"
Mary Chapman 4/11120081:52:00 PM
Page 27:[15]Deleted
3.28.010 Change Orders - The Truckee Donner Public Utility District cannot afford to
maintain a large enough construction crew to be able to undertake all projects in-house.
Therefore, it relies heavily on contractors to perform work. These contractors perform work
in accordance with plans and specifications and based on a fixed price contract.
There are occasionally circumstances encountered in the field after a contractor has
begun work that require a change in the plans and specifications or scope of work and
result in a change in the contract price. These changes are generally matters that could
not be anticipated nor planned for during the design phase of the project.
The contract change order is the procedure whereby plans and specifications or scope of
work and contract price can be changed after
the execution of contrache contract is t change order and work s
commenced. The Board of Directors authorizes
(Minute Order 87-108)
3.28.020 Contractor Insurance Requirements - It is the policy of the District to
require contractors performing work for hinDistri t to maintain appropriate
insurance naming the District as an additional
3.28,020.1 The form of insurance shall be broad form comprehensive general
liability which includes coverage for bodily injury, property damage, and products-
completed operations; automobile liability where applicable;workers compensation.
3.28.020.2 The minimum amount of insurance shall be $200,000 per occurrence
and $400,000 in the aggregate. The General Manager shall consult with the
insurance broker of record and/or an independent risk manager for advice on the
insurance requirements for contracts that exceed
more than the minimum e00that
insuraose risk that,
the judgment of the General Manager, warrant
3.28.020.3 The General Manager shall, after consulting with the insurance broker
of record and/or an independent risk ma he case specify
of contracts that must be let by
contracts he is authorized to let; or, in t
Board action, the General Manager shalnafter recommend insurance requieements
broker
of record and/or an independent risk ma g
to the Board of Directors.
Formatted:Font:12 pt
EXHIBIT A
TITLE 3
FINANCE AND ACCOUNTING
CHAPTERS
3.01 Financial Goals Deleted:t
3.02 Budget Contro
Deleted:Ing
3.04 Auditing
3.05 Governmental Accounting Standards Board(GASB) Deleted:Price of Purenased Power
3.06 Electric Sup121Y Procurement
3.08 Purchasing
3.10 Capitalization Policy
3.12 Accounts Receivable
3.16 Accounts Payable
3.20 Investments
3.24 Restricted Funds Deleted:3.28. contract
A.32 Standby Charges and Assessment Districts - Managements
CHAPTER 3.01
Deleted:BUDGETING
FINANCIAL GOALS
Section:
Deleted:.
3.01,,01 financial Goals Deletes;
3.01.01.1 The following goals are established to promote and maintain the financial Formatted;Font: 12 pt
strength of the District: Deleted:w _
Deleted:e
Deleted:m
Planning Goals - -
• Review Water and�,lectric Mast-__.ns at least e very five years j Deleted:p
_, -
• Review ten ear inance dMasterpl_an each year Deleted:our
�_
Pre are two- ear o erating bud et with semi-annual reviews Deleted:m
• Prepare en-year;apital Improvement Plan: update annually- Deleted:p
• Review rate structure and levels at least once every three years Formatted:Bullets and Numbering
• Review Financial Goals every year, — Deleted:annually five
Deleted:c
Revenue Goals Deleted:replacement budget
Set operating revenues to capture entire cost to provide service plus build and Deleted:three
maintain reserves and satisfy debt coverage ratios Deleted:s
Review connection charges each year and set theg1to recover_all costs __
• Deleted:n
CHAPTER 3.02ti - Deleted:.010
- Deleted:Budget
BUDGET CONTROL - - --
- - _- Deleted:Control
Section:
Deleted:1
3.02,.010 Budget Control -
3.02 010.1 n 2008 for bud et ear 2009 and each two budget Year eriods thereafter -_- Deleted:1
the General Manager shall�submi,to the Board of Directors a draft budget in the format Deleted:
:Annually
approved by the Board of Directors and following generally accepted accounting standards oDeeietea.cause tabe prepared for
for utility budgets. Deleted:scion
3.02,010.2 Bud et erformance will be reviewed at t_a_ Board workshop each six mth ons_ ___ Deletes:1
after the close of the June and December accountin eriods durin each fisca ear -
Deleted:Deleted by Resolution 9611.¶
3.01010.3 The General Maria er shall cause to be prepared a memorandum --- Deleted°1
- - -
- - Deleted: uarterly budget repot
accompanying the semi-annual budget performance reviewwhich describes any significant
variance from planned expenditures and any projects or needs that have occurred since
adoption of the budget that were not anticipated at the time the budget was prepared and
adopted.
3.01010.4 With respect to the capital budget,the General Manager-is authorized to make
line item transfers within any one department, provided the total capital budget for that
department is not exceeded. If the General Manager determines that a capital expenditure
is necessary which will exceed that department's capital budget, he/she shall submit a
recommendation to the Board of Directors for a budget amendment.
Deleted:1
3.0 010.5 When Department Heads request the Board to approve projects operating or - Deleted:Deleted by Resolution 9611
---- - see Section 3.16.030.7(A).
ca ital the will indicate in the descr tion ana resentauun h�W ���u�h ham heron
bud eted for the ro ect and if the costs are ex ected to exceed their budget, recommend Deleted:¶
where the excess costs will be obtained. _ _carrion Break(Continuous)-
(Minute Order 89 43,Res.9522,9611)¶
c -
Deleted:¶
CHAPTER 3.04 ¶
Formatted:Font: 12 pt,Not Bald
AUDITING Formatted:Font: 12 pt
Formatted:Font: 12 pt,Not Bold
Formatted:Font: 12 pt
Sections:
Formatted:Font: 12 pt,Not Bold
3.04.01 A Hlnna of Auditors Periodically the Board of Directors will issue a request for N' Formatted:Font: 12 pt
ro osal for the ur ose of hii iii an audit firm to perform the Districts annual audit Formatted:Font: 12 pt,Not Bold
- -
Auditors will be requested to provide an engagement letter describing services they will Formatted:Font:12 pt
erform and three yearfiinancial ro osal. At the end of the three ear eriod the Boarder Formatted:Font:12 pt,Not Bold
will issue a new re uest for ro osal or if the Board decides to continue the services of Formatted:Font: 12 pt
the current auditors it will ask the then current auditors fora pro osal to extend their Formatted:Font:12 pt,Not Bold
services. ----- - -- Formatted:Font: 12 pt
Portfolio Standard RPS) Code Section 7.83.
Formatted:Font:12 pt
2.06 k) RPS SMW ObleCtlVeS: _ _ Formatted:Bullets and Numbering
1 Maintain reliable overall energy supply portfolio
2. Minimize adverse im act of acquiring new ever resources on customer
electric rates.
3 Renewable resources are defined as non-fossil fueled electric generating
resources including hydroelectric pursu intto Section 398 4(h)(1)of the
California SB 1305.
3 Os(B) RP$ SUppIY Target: . Formatted:Bullets and Numbering
1. Strive to include uali in resources to meet Proiected demand.
2. Assure resource ortfoli0 will have a minimum 21% of renewable
resources by the end of 2010.
3.06 RPS$UpplY Strategies: nd to Formatted:Bullets and Numbering
1 Utilize Public Benefit funds to implement groiects a supplement•
appropriate capital expense proiects.
2 Allocate District Western Area Power Administration (WAPA) as a
non fossil fuel resource included in the RPS supply.
3 Strive to acquire small hydro and geothermal electric supply from
WAPA NC PA or UAMPS that are located within or can be
transmitted to the Sierra Pacific control area.
4. Consider contractin for eothermal eneration and wind generation
backed by natural gas.
5. Find and support solar and other renewable eneration o ortunities
within District service area.
3 061 Procurement Objectives Formatted:Bullets and Numbering
1 Balance the need ithin _
to purchase sufficient reliable electric energy w
District RPS tar et and the tolerance for risk established by the Board of
D i rectors.
2. Provide stable electric rates to customers.
3 Preserve a supply cost advantage.
4 Provide procurement sufficient
control procedures that are ficient to indentifV,
evaluate and manage risk.
3 06 2 Commodity Pricing Policy Formatted:Bullets and Numbering
1 the Electric Supply The General Manager is responsible for implementing -
Procurement olio b overseein the process of all rate schedule
development and ensuring that all procedures are followed consistently
and that all transactions and calculations are agLro riatel documented.
2 Commodity Pricing is composed of two principles with the first principle
the District Board of Directors to meet long-term portfolio planning
objectives.
3 06 4(C Portfolio Performance and Value Reportin
The Electric Utilitia Maria er shall prepare performance reports containing
analysis of physical and financial positions of all electric contracts. Reports
shall be annually, unless the ratio of the market value of a contract falls
outside the risk limits rescribed by the District Board of Directors then the
General Mana er shall inform the Board of this fact and recommend actions.
3 06 4(D Competitive Process
Whenever ossible the Electric UtilityManager with the assistance from
NCPA or UAMPS or other entities a roved b the Board shall obtain three
or more uotations when makin a urchase or sale transaction and select
the best price from a responsible qualified bidder.
06 ar Q Oversight
The Electric Utility Manager shall provide an oversight rote along with the
Administrative Services Manager both reporting to the General Manager.
1 The Electric Utility Manager shall perform review of portfolio' Formatted:Bullets and Numbering
exposure credit exposure transaction compliance and monitor
risk limit compliance.
2. The Electric Utili Mana er shall make recommendations to the, Formattea:B°nets ana Numbenng
General Manager to temporarily or permanently halt transactions
with one or more counterparties exceptions to rules and
rocedures or other operational exceptions that represent
unacceptable risk exposure.
3. The Administrative Service Manager shall review all transactions,* {Formatted:Bullets and Numbering
exceptions and settlement payment accuracy, reportinq findings
to the General Manager.
3 06 5 Authorized Transacting Products
Products allowed for electric transactions include energv capacity,
transmission and ancillary service Only physical transacting products are
approved by the Board Financial products are explicitly prohibited.
Only the Electric Utility Manager with General Manager counter signature,is
authorized to perform a District energy transaction:
PURCHASING
Sections:
3.08.010 Bid Procedure for Purchase of Commodities or Equipment Over Formatted:Right: o°
15 000
3.08.020 Procedure for Purchase of Commodities or Equipment Under Deleted: —�
15,000 - - -
-- - - - Formatted:Font:12 pt
3.08.030 Bid Procedure for Issuance of Service Contracts Over$16,000 Formatted:Indent:
3.08.040 Procedure gf Issuance of Service Contracts Under$15,000 �- Left: 1"
3.08.050 Joint Purchasing with the State and Other Public Agencies
Deleted:O
3 08 060 Process and Procedure for Retention of Consulting Services
3 08 070 Change Orders
3 08 080 Contractor Insurance Requirements
3 08 090 Procurement Authorization Dunng an Emercienc
Formatted:Font: 12 pt,No
3.08.010 Bid Procedure for Purchase of Commodities oSEquipment�ver$15,000�- underline
Prior to issuing a purchase order for the purchase of any commodity or eauipment�the Deleted:f
dollar value of which igfifteen thousand dollars($15,000)or greater,the provisions of the �,
- Deleted:o
Public Contract Code shall be followed, as more fully described in the following sections.
Formatted:Font:12 pt
3.08.010.1 When apepartmentjead orthe authorized Buyer/Cterk determines thatthere
Deleted: item
- --
----_
is a need to issue a purchase order the amount of which is ifteen thousand dollars Deleted:exceeds
Deleted:d
($15,000) or greater, he/she shall notify the General Manager by memorandum which
states the purpose of the purchase, the budget or work order account number to be Deleted:h
charged and the specification of the item or items to be purchased.
Deleted:exceeds
3.08.010.2 The General Manager shall review the memorandum and, if he/she approves Deleted:the
the request, shall cause a public notice to be published in&local newspaper of general-,
circulatio requesting interested Parties to submit sealed bids.The bids shall be publicly Deleted:slerrasun
opened and read at the date and time and in the place specified in the public notice.
3.08.010.3 After the bids have been opened,the General Manager shall submit the matter Deleted:r Pe selling ment rssuurpllyus
to the Board of Directors with a recommendation regarding award of the purchase contract. materialsDeleted:the
Deleted:Sierra Sun
3.08.010.4 When calling for bids on equipment available locally,..the public notice shall be Deleted:If the equipment or material
a small display ad in ,local newspaper of general circulati - - to be purchased is not available locally,
the ad shall be placed only in the public
3.08.010.5 The General Manager shall establish procedures to properly manage the notice section of the newspaper.¶
=-=Section Break(Continuous)====__
process of notifying bidders of the results of the purchase and to implement the decision of Formatted:Font:12 pt,No
the Board. underline
Formatted:Font: 12 pt
3.08.020 Procedure for Purchase of Commodities or Equipment Under$15,000;Prior-, Deleted:the dollar value of
to issuing a purchase order for the purchase of any commodity or equipment,with a value , Deleted:five —1
which exceeds teerr,thousand dollars ( 10 00 , but is less than fifteen thousand dollars Deleted:$agog
3.08.030,5,If the service to be contracted is of a nature that will like) attract bids from local Deleted:a
service providers,the public notice shall be in small display ad-form-in local newspaper Deleted:contractors
of general circulation In addition, advertisements or notices may be made inpppropnate _ Deletes:the
trade journals and de endin on the scope of the ro*ect copies of bid documents will be Deleted:Sierra Sun.
sent to local plan room libraries. If the project is not likely to�ttract local bidders, ad is Deleted:the consultant will place
to be placed only in the public notice section of the newspaper and in appropriate trade Deleted:the
Deleted:will not
oU� rnals.
3.08.030 JAfter the bids have been opened,the General Manager shall-submit the matter Deleted°e
to the Board of Directors for approval with a recommendation regarding award of the
service contract. This recommendation will include the bid award amount and a not to
exceed amount for change orders to be authorized by the General Manager.
3.08.030 7 The General Manager shall establish procedures to properly manage the Deletes°s
process of notifying bidders of the results of the award and to implement the decision of
the Board.
3.08.040,Procedure for (Issuance of Service Contracts Under $15,000, - Prior to - - Deleted'
issuance of a contract for a service with a value Jess than fifteen thousand dollars Formatted:Font: 12 pt,No
underline
($15,000), the following steps shall be followed.',, Deleted:of
Formatted:Font:12 pt
3.08.040.1 The General Manager shall cause plans and/or specifications to be prepared. Deleted:the dollar amount of which is
ng Deleted:.
mal
hone
uotes
l be
quotes,
he contracto2 Three r r hall be askedgto state anly price orrpaym nted in tdiscounts aning. In d a
quotes,
completion date. 1 Deleted:¶
3.08.040.3 The contract shall be awarded by the General Manager to the lowest Deleted:contractor
service provider aking into consideration price and completion date.
3.08.040.4 The General Manager may renegotiate and/or renew contracts upon their
expiration.
Formatted:Font:12 pt,Bold
3.08.040.5 Should overruns or chan a orders ex ect to cause the service contract to ._ Formattea:Font: 12 pt
become 15 o00 or rester the General Mana er shall notifythe Board of Directors for i ts
approval to continue. Deleted:¶
3.08.060 Joint Purchasing with the State of California and Other Public Agencies. Deleted:(Reso.9611A
The District may purchase materials,equipment,supplies,information technology products Deleted:o
and services through the State of California procurement program and jointly with other Deleted:p
public agencies in accordance with the following procedures.
Deleted:a
3.08.050.1 Notwithstanding any other provision of this Chapter,the District may purchase
materials, equipment or supplies,other than printed material,from the State of California
through its procurement program under Public Contract Code Section 10324 and jointly
with other public agencies, provided that:
3.08.060.6 The GM and De artment Mana er shall finalize the ro osal evaluation Formatted:Font: 12 pt —�
Formatted:Font:(Default)Arial
criteria and the weighting to be given to each component.
3.08.060_7 After receivin ro osals the shall be held in the custody of the CAC. The - Formatted:Font:1z pt
CAC shall distribute co ies of all Technical Proposals.to the staff committee members for _ Formatted:Font:(Default)Arial
Formatted:Font:(Default)Arial,
individual review. Not sold,Not Italic
Formatted:Font:(Default)Arial
3.08.060.8 The staff committee shall then hold a meeting to discuss the various r0 OSaIS Formatted:Font: 12 pt
and to rank the consultants based upon technical merit usingthe a roved evaluation Formatted:Font.(Default)Arial
criteria.
Formatted:Font: 12 pt
3 08 060 9 At the same meeting after completion of the te�ch�nical1 rankings,aThis eev review {�rmatted:Font:(Default)Arial
Pro osals shall be opened and reviewed p the stag t omri���.�G
shall ensure that the mart.hours hourly rates services and indirect costs given in the Cost w, Formatted: Italic
Font:
(Default)Arial,
Pro osal corres and to the level of effort described in the I ecnnlcai Proposal and to the Formatted:Font:(Default)Arial
I „
level of effort expected by the District to perform the anticipated work. f Formatted:Font:12 pt
3.08.060.10 The staff committee shall meet to discuss both the Technical and Cost Formatted:Font:(Default)Aria,
Proposals, and determine a short list of consultants to be interviewed b the staff ll Formate Font:(Default)Arial,
J. ', Not Bold,Not Italic
committee. ?� Formatted:Font:(DefaulC)Arial
}" `, Formatted:Font:(Default)Arial,
3.08.060.11 fter final review of the pro osals the staff committee ma determine that a ',�l , Not Bold,Not Italic
iven consultant is clear) su erior to the other consultants and ma recommend to the ','l';,} ,` Formatted:Font:(Default)Anal
GM that interviews are not necessary. The staff committee ma also determine that the ', Formatted:Font: 12 pt
ro osed sco a of work or the expected cost is such that conductinginterviews will not ', Formatted:Font:(Default)Arial
field si nificant information for the staff committee to consider and similar) recommend to Formatted:Font(Default)Arial,
the GM that interviews are not necessary. Not Bold Not Italic
,1�,l
Formatted:Font:(Default)Arial
_3.08.060_12 When interviews are to be conducted the CAC shall contact the s_ho_rt-list
Formatted:Font:(Default)Arial,ed
consultants and schedule in o l Not Bold Not Italicterviews. The date time and duration of the interviews shall Formatted:Font:(Default)Arial
be determined b the De artment Manager in con unction with the staff committee. The
staff committee shall also create a proposed outline and list of any questions to be posed Formatted:Font: 12 pt
to the short listed consultants. Formatted:Font:(Default)Aria[
Formatted:Font: 12 pt
3.08.060.13After coil m letion of the interviews the staff committee shall determine a Formatted:Font:(Default)Arial
recommended consultant for resentation to the Board of Directors. This recommendation Formatted:Fonr.1z pt
shall be based upon the individual consultant's weighted scoring and their overallFormatted:Font:(Default)Arial
proposed cost. Formatted:Font: 12 pt
3 08 060 14 The Department Manager shall prepare a memorandum and appropriate , . Formatted:Font:(Default)Arial
r� r�nrll�m shall summarize the Formatted:Indent:Left: 0.5",
documentation for resentation to the rsoalta. r �� i ici w��.� �.w. Tabs: OJ5",List tab+Not at 1.25
followlnq: Formatted:Bullets and Numbering
v Formatted:Font: 12 pt
• Work to be performed by the Consultant. Formatted:Font:(Default)Arial
• Number of proposals received Formatted:Font 12 pt
Rankin of consultants on a technical basis. Formatted:Font:(Default)Arial
3 08 070 5(A) A memorandum should be prepared setting forth the precise
circumstances justifying the change in plans and specifications or scope of work
and should justify the change in contract price.
3.08.070.5 B The memorandum should be si ned b the De artment Head and
General Mana er and forwarded within 48 hours to each Director.
3 08 070 5(C1 A contract change order should be prepared for consideration by the
Board of Directors at its next regular meeting or at a special meeting if one is called.
3.08.080 Contractor Insurance Requirements- It is the policy of the District to require Formatted:Font: 12 pt,No
- , underline
contractors and service providers performing work for the District to maintain appropriate Formatted:Font.12 pt
insurance naming the District as an additional insured.
3.08.080.1 The form of insurance shall be broad form comprehensive general liability
which includes coverage for bodily Irnury property damage, and products completed
o eratiom automobile liability where applicable workers compensation. Additionally,
service providers may be required to include errors and omissions coverage.
color.
3.08.080.2 The minimum amount of insurance shall be $2,000,000 per occurrence and Fo rmatted:Font:12 pt,FontBlack
4 000 000 in the aggregate. The General Manager shall consult with the insurance Formatted:Font: 12 pt
broker of record and/or an inde endent risk mans er for advice on the insurance
re uirements for contracts that exceed$10 000 or that pose risk that in the iudgment of
the General Mana er warrant more than the minimum insurance.
3.08.080.3 The General Mana er shall after consulting with the insurance broker of record Deleted:¶
and/or an inde endent risk manager.specify insurance requirements in contracts he/she is Formatted:Font:12 pt,Bold
authorized to let* or in the case of contracts that must be let by Board action the General Formatted:Font:12 pt
Manager shall after consulting with the insurance broker of record and/or an independent ;03,
matted:Outline numbered+
t��;' l:3+Numbering Style:Ol,02,
risk mana er recommend Insurance re uirements to the Board of Directors. ,.+Start at:90+Alignment:+Aligned at: 0"+Tab after: 1"dent at: 1"
_ �/ Formatted:Indent:First line: 0"�
3.08.90 Procurement Authorization During an Emer enc
` Formatted:Font: 12 pt,Not Bold
3 08 90 1 An"emergencv" is a situation which poses an immediate risk to health, rife Formatted:Font: 12 pt
to preyen4 ` Formatted:Font: 12 pt,Not Bold
ro 0t or environment. Most emergencies re ulre u� G��� intervention
worsening of the situation It is the General Manager's responsibility to take immediate Formatted:Font: 12 pt
action to protect employees customers and Dlstnct property durmq an emergencv. Formatted:Font: 12 pt,Not Bold
Formatted:Font:12 pt
3.08.090.Z Durin4 an emergencv the General Manager is authorized to repair or reDlace� Formatted:Font:12 pt,Bold
a ublic facility take any directly related and immediate action required by thatemergency, Formatted:Font:12 pt
and procure the necessary equipment services and supplies for those purposes,without Formatted:Font:12 pt,Not Bold
immediate Board a roval and without giving notice for bids to let contracts. Formatted:Font 12 pt
rs within 48 hours Formatted:Font:12 pt,Not Bold
3.08.090.3 The General Manager will re ort to the Board of Directo . -
------------ ---- Formatted:Font:l2pt
any and all actions taken,to deal with the emergencv. , - - - - Formatted:Font:12 pt,Not Bold
Formatted:Font:12 pt
6. In the event that a urchase is made for multi le "like or similar" items that Formatted:Bullets and Numbering
Indlvldually are of lesser value than the minimum cost listed but collectively are
greater than the mirnmum cost the Items may be capltahzed. Formatted:Font: 12 pt
Deleted:(Res.2006-20A
CHAPTER 3.12
ACCOUNTS RECEIVABLE
Sections:
Deleted:Sundry
3.12.010 jillisce.1laneous Account Billings
3.12.020 Delinquent Accounts Receivable
3.12.010 Miscellaneous.Account Billings-A_miscellaneou account is a bill rendered Deleted:sundry
by the District to a party to whom the District has rendered a service or provided a good for Formatted:Font:12 pt,Bold
which the District charges a fee but shall not be any service or good which is billed to a eundry 12 pt
customer of the District through the normal monthly utility billing system. Formatted:Font: iz pt,No
It is the policy of the District to protect the assets of the District by promptly issuing bills for I underline
goods or services rendered, and by following well established follow-up procedures to
insure that bills are paid in a timely manner.
3.12.010.1 This policy shall apply to the billing and collection of miscellaaeo ccounts. Deleted: _
Deleted:sundry
3.12.010.2 When any department of the District notifies the Administrative Services Deleted:
Department that a billable service or good has been provided, the Administrative Services Deleted:d
Department shall promptly render a bill to the appropriate party. The miscellaneous
Deleted:sundry
,account bill is due and payable 3Adays after the billing date. Deleted:19 —�
3.12.010.3 Jf the tHl remains unpaid after 30 days, the bill shall be considered delinquent Delete
and shall be assessed a late charge in accordance with current District policy, and a Deletes:B
second request for payment shall be promptly mailed.
�3.12.010 If the bill remains unpaid after 60 days, the General Manager shall cause Deleted:3.611.1o.a Deleted by
Resolution 2.01
collection proceedings to commence,which may include initiation of action at Small Claims q
Deleted:5
Court.
3.12.010.§, The General Manager is authorized to act within his/her discretion to alter the _, Deleted:s
time periods set forth in this policy when a miscellaneous-account customer is cooperating Delete Su^dry
with the District in resolving an unpaid bill. I(Mit-tl
lution
3.12.020 `Delinquent Accounts Receivable-At the end of June and December of each
year, the District Treasurer will have identified all delinquent accounts receivable on 611)¶
closed accounts that are considered uncollectible that exist on the District's records for six Formatted:Font:12 pt,No
months or more. Anv customer who is making payments on his/her delinquent account will underiine
not be added to the delinquent account Ilst until the customer stops making agreed upon Formatted:Font:12 pt —�
3.16.010.1(Fl Employee benefits-previously approved by the Board including:_
Deleted:
,deferred compensation deposit; pension payments (401 a 457 and CaIPERS); 1 Deletes; 1
vision reimbursements and and any other payment or reimbursement pursuant to the Deleted;
District's agreementwith the International Brotherhood of Electrical Workers,Local bur�sementdayhospAaldeductible
1245 and em to ee benefits authorized in the District's Code 4 Personnel for
management/exern t employees.
3.16.010.1(G1 Expense checks-advances for meetings, seminars, conferences, Deleted:
etc., for staff, General Manager and Board of Directors, Reimbursement_for Deleted:members
es in accordance with the Districts Title
mileage and approved out of pocket expens
4 expense reimbursement policy.
3.16.010.1(H),lnsurance- life, health, disability and dental premiums.
- Deleted:
3.16.010.1(I1 Payroll - employee Deleted:_ checks, payroll transfers, meals, union-dues, - Deleted:state compensation
employee savings deductions, workers compensation insurance, ay�rolltax
Del
withholding, em lo_er taxes and any other employer payroll obligations. eted;FICA,SDI,personal incomestate unemployment,and
miscellaneous employee payroll
�.16.010.1 luding(K�Postage-Postage inc stamps, trust fund, postage meter and R deauccions
Deleted:3.16.010.1(J) Petty cash-
bulk mailing permit deposits. reimbursement of fund.¶
I
3.16.010.1(L),Repayment of internal loans approved by the Board.flournal entry Deleted:
only; no actual check). Deleted:Permit No.1,
Deleted:
3.16.010.1(MVLoans-Repayment of loans that have been approved by the Board Deleted;Tahoe Donner infra-fund
of Directors. Where practicable,the payment will be sent by ACH or wire transfer, ban
to the lending institution on or before the payment due date. Deleted:
-
Deleted:actually
3.16.010.1(N) State Board of Eq ualization sales tax, use tax and energy Deleted:red —�
--- — -----
surcharges collected. Deleted°
3.16.010.1(0)Wholesale power expenses including,but not limited to,the Northern
California Power Agency, the District's current Board approved wholesale power
a2pDlLier and Sierra Pacific Power Company. Payments may be by ACH or wire
transfer to the bank account number provided by the vendor.
3.16.010.1 P) fR�Id items-where the Board has authorized a bid purchase and the Deleted:
( Y - Deleted:is the same dollar amount
invoice,excluding sales tax and shipping charges Is ess than or equal to
authorized contract. Amounts billed above the pig amount must be approved by the a cmatted:Font: 12 pt,Font color:
General Manager or the Board Formatted:Font:12 pt
Deleted:or
3.16.010.1(Q)Monthly and annual building utility expenses fortelephone,garbage, Deletes:¶
heating,sewer collection and treatment(TTSA and TSD) cable. Internet and utility
bills paid to other agencies such as electric utility bills for pump stations and wells.
3.16.010.1(R) terns approved by the Board Any items that have been approved by
Deleted: Deleted by Resolution 9611
the Board at a scheduled board meeting (e . . property and liability Insurance
invoices match,that the invoices have been properly processed and that the expenditures Deleted:warrant register
have been made in accordance with the District's purchasing procedures. The Treasurer
then authorizes the payment ACH or wire transfer of funds using a secure program linked
to the District's bank account.
Deleted:3.7Me
5 The Treasurer
- ------- or General M shall then process
�3.16.030.6 Jn the event that a manual check needs to be issued outside of the automate
check run proces the check will require two signatures.The two signatures can be any the checkstheDistricts
automated cgning machine
two Board authorized checking account signatures.. usingthefasignatureofeither
,+' the Treasur General Manager.3.16.030.7At the secondregularmeetingof each month held by the Board of DirectorsThe automack signing machine__ - - - shall be oneays for a removabley 'i ++', facsimile plaeh will be kept locked
xhe Soard will be presented with the following reports. - , t\, up when not in use.The machinewill
+ also require two keys to activate;the
, 16.030J(A)(1) Accounts payable check register showing all of the checks issued `;'$ two
keys will kept by two different
for the accounting period being presented. The register shall show the date of the ,a� ¶
check,the check numbers issued,the vendor names and the amount of the checks. 'g'al Deleted_
°,',+ + Deleted:regular weeky check run
3.16.030.7(A)(2) Statement of the general fund showing the beginning checking „ + Deleted:Individual Directors,the
account balance,the categories of cash received by the District during the month,a General
er leManaag r����d ri sign
Summall
ry list of the cash disbursements made during the month, an authorized on the Districtscheckingaccounts.¶
transfers in or out of the general fund and the ending balance at the end of the
Deleted:
month. Deleted:monthly business
I Deleted::
—�
3.16.030.7(A)(3) Investment report showing the status of the District restricted ` DeI —
---—
funds. Deleted:3.16.030.7(A)The Board
will be presented with the following
3.16.030.7(A)(4) Fund status report showing the location of all District funds and reports:¶
the amount on deposit at each financial institution or organization. Deleted:¶
Deleted:'
A.16.030.7(B)=The details of all checks issued and invoices paid shall be available 7Dehd:3.16.030.7(A)(5) Monthly
report showing the status of
for review by any Director in the Administrative Services Department. The Board ed expenditures compared to
shall officially authorize payment of all disbursements that have been made by the xpenditures.¶
Treasurer and presented on the accounts payable check register at a board o.7(A)(s) Monthly financialmeeting, monthly. ent showing the staves of alles and expenditures in theof financial statements using3.16.030.7(C)The Treasurer shall list on the agenda any invoice for purchases that lly accepted accountinghave not been made in accordance with the District's purchasing policies as set lesforutilkies.¶
forth in Title 3, Chapter 3.08, Purchasing. Deleted:
[Deleted:the mouthy business3 16 030 7(D) Semi annual budget reports showina the status of budgetedeting.
ex enditures compared to actual expenditures will be presented at a board Formatted:Font: 12 pt,Bold
worksho after the close of the June and December financial records. Formatted:Form: 12 pt �
3 16 030 7(E)Semi-annual financial statements showing the status of all revenues_
Formatted:Font:12 pt,Bold
and expenditures in the format of financial statements usin
.AIL, acce teri Formatted:Font: 12 pt
accountin rinci ales utilities after the close of the June and December financial
records. Formatted:Font: 12 pt —�
Deleted:
purposes of this policy. Deleted: -�
3.20.008.3 The District hereby ratifies and confirms the acts of its officers,_agents or Deleted:r
employees in heretofore requesting transfers of funds from this District's accounts with the Deleted:b
Bank by wire or comparable transfer together with any acts performed in relation hereto. Deleted:
Deleted:b
3.20.008.4 That the Clerk of the District is hereby authorized and directed to execute Deleted:b
of theBesolution related hereto to theBank and ,' Deleted:b
acknowledge and deliver a certified copy
any other person or agency which may require copies, and that the certification of the Deleted:b
(Secretary) Clerk as to the signatures of the above named officers will be binding on this
(Resolution tion 9016,9526,9611)¶
District.
�' Deleted:
3.20.008.5 That the Pank is authorized to act upon this policy until written notice of the , Formatted:Font: 12 pt,No
revocation thereof by a resolution duly adopted by the Board of Directors of this District is '„" ,;' underline
way to affect the obligations of this District to ,';;,;' Formatted:Font: 12 pt
delivered to the dank, such revocation in no
the ank incurred pursuant to the terms of this policy prior to receipt by the,�ank of such ; r s 20 010.1 Deleted by Resolution
notice or revocation. N' �11¶
;� 3.20.010.2 Deleted by Resolution
f ' 9611.11
3.20.010 Jnvestment of Surplus Funds, Deleted:3.20.010.3
V Deleted:Manager and
,Thepistrict Treasurer shall invest surplus funds, both restricted and general, pof all fund
t0 = Deleted:in either the Local Agency
the District's Investment Policy (District Code 3.20.12)__A regular accounting of all fund Investment Fund,certificates of ... 6
activities shall be presented to the Board of Directors in the monthly Treasurers Report_ Deleted:(Resolution 7911.96 ...
Formatted:Font:(Default)Anal
;3.20.012 jnvestment Policy. Formatted:Font:12 pt
3.20�012.1 Inver stme nt uthorit Deleted:
In accordance with Section 53600 et seq. of the Formatted 8
Government Code of the State of California, the authority to invest public funds is��„
expressly delegated to the Board of Directors for subsequent delegation to the Treasurer. rr`,,, Formatted:Font: 12 pt
The Treasurer of the District receives direction and authority to invest any and all District �`;,;; Deleted:2
funds from the Board of Directors of the District. Formatted 9
Formatted:Font:12 pt
3.2Q.012.2`Statement of Obiectivess Per section 53600.5 of the California Government Deleted:NVESTMENT
Code, the primary objective of the Treasurer shall be to safeguard the principal of the !I Formatted ... 10
funds under his/her control when investing public funds. The secondary objective shall be ;, Formatted:Font: 12 pt -�
to meet all liquidity requirements and the third objective shall be to achieve a return on the Deleted:UTHORITY
funds under his/her control. ;;, Formatted rlil
In order of priority,three fundamental criteria shall be followed in the investment program: Formatted:Font: 12 pt
Deleted:2
1. Safety - Safety of principal is the foremost objective of the investment program. Formatted ..r12]
Investments shall be undertaken in a manner that seeks to ensure the preservation NT OF 13
of capital in the overall portfolio. The objective will be to mitigate credit risk and Deleted:TATEME
Formatted:Font: pt
interest rate risk. _ _ Formatted:indent: Left: 0.25"
a. Credit Risk: The District will minimize credit risk, the risk of loss due to the Formatted ... 14
,failure of the security issuer or backer, by: �,
Formatted:Font: 12 pt
Formatted:Font: 12 pt
i. Limiting investments to the safest types of securities. Formatted:Indent: Left: Ds°
be allocated to the various funds or accounts based on their respective
participation and in accordance with generally accepted accounting
principles.
The Treasurer may invest in any security authorized for investment under the
California Government Code, subject to the limitations described herein:
1. Maturity Limitations—
a. The aggregate maturity of the total portfolio must not exceed five(5)years
for the general operating funds of the District.
b. Funds which represent debt service reserve funds may be invested up to a Deleted:that of
term of ten years,as long as the period invested does not exceedjhe term of
the debt repayment.
c. Investments of restricted funds held for the Donner Lake Assessment District
that are not expected to be needed to pay debt service on the SRF loan may
be invested up to the term of the SRF loan.
d. Construction funds may be invested to mature on or before the date funds
are expected to be needed for construction purposes.
2. Investment Transactions — the purchase of any investment other than those
purchased directly from the issuer shall be. to the extent possible, from a firm
designated as a Primary Dealer by the Federal Reserve of New York.
3. Sale of Securities — Securities may be sold to provide needed liquidity, to
restructure the portfolio to reduce risk or to increase the expected return of the
portfolio. In no instance shall a sale of securities be used for speculative purposes.
All sales are to be reported to the Board on a monthly basis.
4. Prohibited Investments — Prohibited investments include inverse floaters, range
notes, interest only strips derived from a pool of mortgages (Collateralized
Mortgage Obligations), and any security that could result in zero interest accrual if
held to maturity. (Zero interest accrual means the security has the potential to
realize zero earnings depending upon the structure of the security. Zero coupon
bonds and similar investments that start below the face value are legal because
their value does increase.)
5. Safekeeping
a. All securities transactions entered into by the District shall be conducted on
a delivery versus payment(DVP) basis.
b. Securities shall be held by an independent custodian designated by the
Treasurer and held in safekeeping pursuant to a safekeeping agreement.
C. All financial institutions which provide safekeeping services for the District
shall be required to provide reports or safekeeping receipts directly to the
Treasurer to verify securities taken into their possession.
Formatted:Font:12 pt
Deleted:Res.2006-33,2007-34 )
- Deleted:¶
CHAPTER 3.24 ¶
RESTRICTED FUNDS Formatted-Indent: Left: 0.5"
Formatted:Indent:Left: 0.5"
Sections: rr Formatted:Font: 12 pt
+ Deleted:'s
3.24.010 Restricted Funds + 1I Deleted:(Resolution 8817,96111 j
j
r,
t staff when monies collected by the District are Deleted:¶
3.24.010.1 The Board of Directors will direc
to be considered as restricted funds. +,,� -
CHAPTER 3.28¶
¶CONTRACTS MANAGEMENTQ
194 010.1 (A) Board Designated Restricted Funds are those funds restricted bv'
Board action and which the Board can change the purpose of the designation at ¶ections:¶
3.28.010_Change Orders¶
any time. ; 4 3.28.020_Contractor Insurance
Requirements¶
3.24.010.1 (B) Restricted Funds are those funds that are restricted by contract ors
a reement with the Distract such as a loan reserve fund. rable
ted:3.28.010 ChanaeOrders-
'I ruckee Donner Public Utility
` ; ct cannot afford to maintain a
3.24.010.2 Restricted funds will be invested pursuant to the District's Investment policy as , enough construction crew to be
o undertake all projects in-house.
described in Chapter 3.20, Investments. ; efore,it relies heaviyon
contractors to perform work. These
3.24.010.3 All interest earned upon said restricted funds shall adopt a character of and contractors perform work in r accordance with plans and
become part of the specific restricted account unless otherwise directed by the Board of , specifications and based on afimd
Directors. In the case of loan reserve funds whoss.balances are greater than the reserve
f, I; price contract.¶
re uirement the surplus funds may be used to offset the principal and interest payments rare ionalled in the ldcircu stances
on the loan. ;, contractor has begun work that require
a change in the plans and
3.24.010.4 Expenditures from restricted funds shall be authorized by the Board of specifications or scope of work andresult in achange in the contract price.
Directors. From time to time,the Board may pre-approve transfers from restricted funds in These changes re be anticipated enal generally
that or
advance that pertain to specific projects or activities. planned for during the design phase of
the project.¶
9
3.24.010.5 The District's Treasurer will include a monthly report on the activity of the The contract change order is the
restricted funds accounts along with the monthly Treasurer's Report. I' procedure whereby plans and
specifications or scope of work and
I contract price can be changed after the
f
I contract is executed and work has
commenced. The Board of Directors
CHAPTER 3.32 authorizes the execution of contract
change orders.¶
9
STANDBY CHARGES AND ASSESSMENT DISTRICTS Most contract change orders are such
that their consideration by the Board
can wait for a regular Board meeting.
However,under certain circum 15
Sections:
Deleted:(Resolution 9031,9611)¶
11
3.32.010 Collection of Delinquent Assessments Deleted:
3.32.020 Standby Charges Formatted:Font: 12 pt,No
3.32.010 Collections of Delinquent As The following procedure is to be ,_
underline
- Formatted:Font: 12 pt
charges. Thereafter, the General Manager shall direct staff to prepare an updated list of
unimproved parcels to be assessed electric and water standby charges.The records shall
be prepared in a format acceptable to both Nevada and Placer Counties and shall be
submitted to them before their scheduled deadline.The assessments will then appear on
the annual property tax bills sent out by Nevada and Placer Counties. Nevada and Placer
Counties will then act as the collection agents for the assessments and will forward
payment to the District pursuant to county policy.
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3.06.010.1(C) In no event shall any single contract entered into under authority of this
policy extend for a period of greater than three months.
3.06.010.1(D) Prior to executing the contract, the Power Supply Engineer shall submit his
recommendation to the General Manager of the District. After securing approval from the
General Manager, the Power Supply Engineer is authorized to execute the contract.
(Reso 9720,0317)
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in either the Local Agency Investment Fund, certificates of deposit, or other major banking
investments which are allowable by law and approved by the Board of Directors and yield
the maximum return to the District.
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(Resolution 7911. 9611)
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TATEMENT OF OBJECTIVES
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3.28.010 Change Orders - The Truckee Donner Public Utility District cannot afford to
maintain a large enough construction crew to be able to undertake all projects in-house.
Therefore, it relies heavily on contractors to perform work. These contractors perform work
in accordance with plans and specifications and based on a fixed price contract.
There are occasionally circumstances encountered in the field after a contractor has
begun work that require a change in the plans and specifications or scope of work and
result in a change in the contract price. These changes are generally matters that could
not be anticipated nor planned for during the design phase of the project.
The contract change order is the procedure whereby plans and specifications or scope of
work and contract price can be changed after the contract is executed and work has
commenced. The Board of Directors authorizes the execution of contract change orders.
(Minute Order 87-108)
3.28.020 Contractor Insurance Requirements - It is the policy of the District to
require contractors performing work for the District to maintain appropriate
insurance naming the District as an additional insured.
3.28.020.1 The form of insurance shall be broad form comprehensive general
liability which includes coverage for bodily injury, property damage, and products-
completed operations; automobile liability where applicable;workers compensation.
3.28.020.2 The minimum amount of insurance shall be $200,000 per occurrence
and $400,000 in the aggregate. The General Manager shall consult with the
insurance broker of record and/or an independent risk manager for advice on the
insurance requirements for contracts that exceed $10,000, or that pose risk that, in
the judgment of the General Manager, warrant more than the minimum insurance.
3.28.020.3 The General Manager shall, after consulting with the insurance broker
of record and/or an independent risk manager, specify insurance requirements in
contracts he is authorized to let; or, in the case of contracts that must be let by
Board action, the General Manager shall, after consulting with the insurance broker
of record and/or an independent risk manager, recommend insurance requirements
to the Board of Directors.