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HomeMy WebLinkAboutAgenda Truckee Donner Public Utility District Board of Directors Joseph R. Aguera John L. Corbett Business Office Engineering Services Richard K. Currar. (916) 587-3896 (916) 587-3944 FAX (916) 587-5056 James A.Maass Patricia S.Sutton REGULAR MEETING General Manager 7:00 p.m. - AUGUST 19, 1991 Peter L. Holzmeister TDPUD BOARD ROOM A G E N D A 1. Call to order 2 . Roll call soon thereafter as possible) 3 . Public input (7: 25 PM or as UNFINISHED BUSINESS WEN BUSINESS 4 . Tahoe Donner pipeline replacement project: a) Status report b) Consideration of contract change orders c) Consideration of invoices and progress pay estimates d) Consideration of transfer of funds from acquisition fund to general fund 5. Consideration of resolution approving environmental documents for the Gateway tank project 6. Review of policy regarding the illegal diversion of electricity 7 . consideration of resolution issuing a call for bids on a small truck for the Meter Reading Department (Technical Services) ROUTINE BUSINESS 8. Direction regarding minutes of July 15 and August 5, 1991 9 . Correspondence 10. Bills for approval 11. Staff report CLOSED SESSION RETURN TO PUBLIC SESSION ADJOURNMENT NOTE - The complete packet of -material relating to the agenda is available for review at the PUD office and at the Truckee library. Poste /and ma Led S//XAQ 91 �uty District Clerk Post office Box 309 0 11570 Donner Pass Road Truckee, California 96160 TRUCKEE DONNER PUBLIC UTILITY DISTRICT BILLS FOR BOARD APPROVAL - AUGUST 19, 1991 TOTAL ELECTRIC WATER DESCRIPTION I. B. M. _-r .__- __. _________T 5,015.01 5,015.01 PRINTER FOR ENGINEERING. MBNA AMERICA BUSINESS CARD 64.80 64.90 3AMFES MAASS - NCPA COMMISSION MEETING IN MURPHYS., ORCOM SYSTEMS 7,588.58 5,312.01 2,276.57 CUSTOM BILLING REPORTS AND CUSTOM WORK ORDER ACCOUNTING. POWER COM, INC. 3,414.61 3,414.61 10 SUBSTATION FUSE UNITS, 100 AMP, 60 KVA. SAVERS ENGINEERING INC. 8,733.77 8,733.77 AR.MSTRONG BOOSTER PIPE (3355.90) MASTERPLAN (914.37) FAST RIVER STREET EASEMENT (100.00) BACTERIA SAMPLE MAP (228.50) STONEWOOD CONDOS (210.001 TA140E DONNER DRIVING RANGE (25.00) HENN DEVELOPMENT (250.00) PAYLESS DRUG (190.00) PROSSER WOODS (240.00) TAHOE FOREST HOSPITAL (185.00) TELEMETRY REQ. FOR PROP. (40.00) MISC. REQ. AFTER ANDY (575.00) VAUGHN ENQUIST (105.00) HWY 267 RIVER CROSSING (140.00) HIRSCHDALE TANK RECOAT (25.00) ANNEXATION STUDY (50.00) HYIDR. MODEL @ TSD OFFICE (50.00) GATEWAY TANK DESIGN (145.00) PROP 55 PRELIMINARY ENGINEERING: (225.00) DONNER TRAILS TANK 12 (510.00) E. RIVER STREET (10.00) CROSS CONNECTION (1160.00) . -^- 24,816.77 13,806.43 11,010.34 Truckee Donner Public Utility District Board of Directors Joseph R.Aguera John L.Corbett Business Office Engineering Services Richard K. Curran oil (918) 587-3896 (916) 587-3944 FAX (916) 587-5056 James A. Maass Patricia S.Sutton General Manager Peter L. Holzmelster August 14, 1991 MEMORANDUM To: Board of Directors From: Peter L. Holzmeister, General Manager subject: Staff Report 1. Monthly Bacteriological- Report Attached you will find the bacteriological report for July. You will note that one out of 37 samples indica�c-.d the presence of coliform bacteria within the distribution system. It did not, however, contain fecal coliform. Another sample was taken immediately at the same locat- gin and this sample indicated no coliform bacteria was present. smc Attachment Post Office Box 309 0 11570 Danner Pass Road + Truckee, California 96160 Truckee Donner Public Utility District � Post Office Box 309 • 11570 Donner Pass Ind. • Truckee, California 95734 Customer Service (916) 587-3896 Engineering Department (916) 587-3944 MEMORANDUM REUD A U G 8 1991 August 7, 1991 To: Peter L. Holzmeister, General Manager From: Maria Chavez-Martinez, Engineering services Subject: Monthly Bacteriological Report - July 1991 Attached is the "Summary of Bacteriological Water Quality" report for the month of July, 1991. As you can see, the report shows that 36 of the 37 samples taken within the District's distribution system were free of coliform bacteria, and met the state's drinking water standards. The only sample indicating the presence of coliform bacteria within the distribution system was taken at 10793 Hirschdale Road. This sample did not however, contain fecal coliform bacteria, and met the States drinking water standards. When we were informed by Cranmer Engineering of the one tube which was found to contain the bacteria, we immediately took an additional sample at the same location and had it tested at T.T.S.A. This sample indicated no coliform bacteria present. We informed Jess Morehouse, with the State Department of Health Services of the procedure which we followed. He advised us that no additional samples were needed. mgcm mgcm SUMMARY OF BACTERIOLOGICAL WATER QUALITY TRUCKEE DONNER PUBLIC UTILITY DISTRICT System Source Samples Portions Percent Samples Portions Percent Yr. /Month Collected Positive Positive Collected Positive Positive 1991 MAY (Truckee) 20 0 0 8 24 5% (Prosser) 8 0 0 7 0 0 (Hirschdale) 1 0 0 1 0 0 June (Truckee) 20 0 0 15 25 2% (Prosser) 7 0 0 8 0 0 (Hirschdale) 1 0 0 1 0 0 July (Truckee) 25 0 0 22 0 0 (Prosser) 10 © 0 10 0 0 (Hirschdale) 2 16 6% 2 0 0 4 Northside Well (2 tubes) I Northside Well (2 tubes) 6 10793 Hirschdale Rd (1 tube) i SUMMARY OF BACTERIOLOGICAL WATER QUALITY TRUCKEE DONNER PUBLIC UTILITY DISTRICT System Source Samples Portions Percent Samples Portions Percent Yr./Month Collected Positive Positive Collected Positive Positive 1991 January (Truckee) 20 0 0 8 41 10% (Prosser) 8 22 5% 8 0 0 (Hirschdale) 1 0 0 1 0 0 February (Truckee) 20 0 0 8 0 0 (Prosser) 8 0 0 8 0 0 (Hirschdale) 1 0 0 1 0 0 March (Truckee) 20 0 0 7 0 0 (Prosser) 6 0 0 8 0 0 (Hirschdale) 2 0 0 2 0 0 April (Truckee) 26 0 0 10 13 2 0 (Prosser) 8 0 0 10 0 0 (Hirschdale) 1 0 0 1 0 0 1 Norths ide Well (4 tubes) 2 Kayhoe Court, Olympic Hts. (2 tubes) 3 Airport Well (1 tube) fj �C ✓ e // ............. .... S� ,� . .�� Jifo•7ed.� .14�a.•7od� rs.a•.r i3.>�`� I�a:�:4�„� a~r�>+yy-��1... • •�3.�� /1J.�1 L-,•T-Ylr.su��� .:r•7.�d.S' .r��.�L� 'y`.p�sis- ry�'� J�cr,4%d........ .............. i E- 1 RESOLUTION NO. 9127 OF THE TRUCKEE DONNER PUBLIC UTILITY DISTRICT MAKING FINDINGS AND APPROVING CONTRACT CHANGE ORDER NO. 2 FOR EACH OF THE TAHOE DONNER PIPELINE REPLACEMENT PROJECT CONTRACTS WHEREAS, the water distribution system in the Tahoe Donner Subdivision has been the source of numerous leaks in the past, resulting in (1) loss of extensive quantities of water, (2) extensive pumping costs of water which is ultimately lost through such leaks, and (3) costly and time-consuming repairs; and WHEREAS, during 1990 and 1991 the District resolved to replace the pipelines with leaks which it could reasonably afford to; and WHEREAS, the District engaged SEA, Inc., as consulting engineers, to advise it with respect to which pipelines are in need of replacement, and to supervise the replacement project; and WHEREAS, SEA, Inc. provided the District with a map of the entire Tahoe Donner Subdivision, delineating those lengths of pipeline that were seriously leaking and in need of replacement, and estimating the replacement cost; and WHEREAS, based on SEA, Inc.`s estimate of the cost of the pipeline replacement, the District determined that it could not afford to replace all defective pipelines, but instead could only replace approximately 71,640 feet of pipeline, which is only a portion of those pipelines that were seriously leaking; and WHEREAS, during 1991 the District issued Certificates of Participation in order to raise necessary funds for the Tahoe Donner Pipeline Replacement, but had determined that only approximately$6.5 million was available for actual construction work associated with the Tahoe Donner Pipeline Replacement; and WHEREAS, under federal law,the money received from the issuance of Certificates of Participation must be expended within two years, thereby requiring that all construction projects financed by the Certificates of Participation be completed during either the summer of 1991 or the summer of 1992; and WHEREAS, in the spring of 1991 the District awarded three contracts, known as Contracts A, B, and C, to two different contractors calling for the replacement of that section of pipeline that the District determined that it could afford; and WHEREAS, the bids received from the contractors were substantially lower than had been anticipated by the District and by its engineers. Set forth below are the engineers' estimate for each contract, the actual amount of the bids that were accepted, and the difference, representing funds of approximately $1,900,000 still available for use on the Tahoe Donner Pipeline Project: Contract A Contract B Contract C Engineers' Estimate $2,363,940 $3,390,125 $642,300 Actual Bid Price $1,601,000 $2,238,143 $613,330 Remaining Funds $ 762,940 $1,151,982 $ 28,970 WHEREAS, realizing that there were excess funds available for additional pipeline replacement, the District requested that SEA, Inc. advise the District with respect to additional pipeline sections, in need of repair, that might be added to the existing contracts; and -2- WHEREAS, by the letter dated August 19, 1991, SEA, Inc. advised the District and recommended that Contracts A, B, and C be changed to provide for the addition of a total of approximately 11,045 feet of additional pipeline, the precise amounts of which and cost of which are shown below for the three contracts: Contract A Contract B Contract C Pipeline Added 5,945 feet 4,700 feet 400 feet Additional Cost $469,200 $398,900 $50,000 WHEREAS, District Counsel advised the District that California law does not contain any explicit restrictions on the ability of the District to increase (1) the length of pipeline covered by the contracts, or (2) the dollar amount added to the contracts, and WHEREAS, both of the contractors employed by the District have indicated a willingness to undertake the work, and both have indicated that they believe they could accomplish the additional work during the 1991 building season; and WHEREAS, the unit price used in arriving at the amount of the contract change order is the same unit price contained in the contractors" original bids, increased only by the cost of moving their equipment from one location to another, and by the cost of overtime pay required to complete the work during the 1991 building season; and WHEREAS, SEA, Inc. has advised the District that the unit prices contained in the existing contracts are very favorable to the District, and that it is possible that if the new work proposed to be done is put out for bid during the 1992 building season, the unit prices could be considerably higher. In addition, SEA, Inc. has advised the District that if the work were put out for bidding for the 1992 building season, contractors bidding on -3- such work would undoubtedly have considerable additional mobilization expenses for which the District would ultimately be responsible; and WHEREAS, it would be to the District's advantage to repair the existing leaks during the 1991 building season, in order to limit the amount of water lost from the leaking pipes; and WHEREAS, as indicated above, because the water used in the Tahoe Donner pipeline system must be pumped up to a high elevation, at considerable expense to the District, any water lost through leaking pipes represents a serious financial loss to the District; it would therefore be extremely advantageous to the District and to its ratepayers to approve the change orders as described above, and the District would experience a substantial savings in money as compared to completing the proposed work during the 1992 building season. NOW, THEREFORE, BE IT RESOLVED by the Directors of the Truckee Donner Public Utility District as follows: 1. All of the recitals set forth above are hereby adopted as findings by the District. 2. SEA, Inc. and the District General Manager are directed to proceed to accomplish the change orders set forth above, and are authorized and directed to take all steps necessary to accomplish such change orders. PASSED AND ADOPTED by the Board of Directors of the Truckee Donner Public Utility District at a meeting thereof duly called and Reid within said District on the 19th day of August, 1991, by the following roll call: -4- AYES: Aguera, Corbett, Curran, Maass NOES: Sutton ABSENT: None TRUCKEE DONNER PUBLIC UTILITY DISTRICT r'f 4os46th��kguera,', By esident ATTEST: usan M. Craig, Deputy District lerk TDPUD\pipeline.res RESOLUTION NO. 9128 OF THE TRUCKEE DONNER PUBLIC UTILITY DISTRICT APPROVING THE PROPOSED NEGATIVE DECLARATION FOR THE GATEWAY TANK PROJECT WHEREAS, the District' s Local Guidelines Implementing CEQA require that the Board of Directors make a determination as to whether the Gateway Tank project should be modified in accordance with the mitigation measures specified in the Initial Study so the project will not have a significant effect on the environment; and WHEREAS, once such a determination is made by the Board of Directors, District staff may file the preliminary Environmental .assessment, proposed Negative Declaration and Initial Study with the County clerk and provide public notice of and circulate to other public agencies and the State Clearinghouse the proposed Negative Declaration; NOW, THEREFORE, BE IT RESOLVED by the Board of Directors of the Truckee Donner Public Utility District as follows: 1. That the Board hereby makes the determination that the Gateway Tank project should be modified in accordance with the mitigation measures specified in the Initial Study so that the project will not have a significant effect on the environment. 2 . That the proposed Negative Declaration for the Gateway Tank project be approved. 3 . That staff be directed to circulate and file the proposed Negative Declaration in accordance with the District' s Local Guidelines Implementing the California Environmental Quality Act. 4 . That a public hearing to receive comment on the proposed Negative Declaration be scheduled for September 3 , 1991 at 7 : 30 PM. Passed and adopted by the Board of Directors of the Truckee Donner Public Utility District at a meeting duly called and held within the District on the 19th day of August 1991, by the following roll call vote: AYES: Corbett, Curran, Maass, Sutton and Aguera. NOES: None. ABSENT: None. TRU0EE DONNER PU LIC UTILITY DISTRICT r By zJ se ° R. Ague , President ATT77" E % r Susan M. Craiq, Deputy D" riot Clerk smc RESOLUTION NO . 9129 OF THE TRUCKEE DONNER PUBLIC UTILITY DISTRICT APPROVING SPECIFICATIONS AND CALLING FOR BIDS ON A 1/2 TON, MID-RANGE TRUCK FOR THE TECHNICAL SERVICES DEPARTMENT WHEREAS, the Board of Directors of the Truckee Donner Public Utility District has determined the need to purchase a 1/2 ton, mid-range truck for the Meter Readers; NOW, THEREFORE, BE IT RESOLVED that the Board of Directors of the Truckee Donner Public Utility District does hereby authorize the President to issue a call for bids for one 1/2 ton, mid-range truck for the Meter Readers based on the specifications prepared by staff. Further, that staff determine the date and time of the bid opening. PASSED AND ADOPTED by the Board of Directors of the Truckee Danner Public Utility District at a regular meeting thereof duly called and held in the District on the 19th day of August 1991 by the following roll call vote: AYES: Corbett, Curran, Maass, Sutton and Aguera. NOES: None. ABSENT: None. TR C�EE DONNER PU IC UTILITY DISTRICT Bye seph It. _ Aguer4, President ATTEST°fr ° Susan M. Craig, Deputy Distfict Clerk smc Truckee Donner Public Utility District Board of[directors Joseph R.Aguera John L.Corbett Business Office Engineering Services Richard €s. Curran (916) 587-3896 (916) 587-3944 FAX (916) 587-5056 James A. Maass patr""€cia S. Sutton REGULAR MEETING General tanager :QQ p.m. - TUESDAY, 913191 Peter L. Holzmeisler TDPUD BOARD ROOM A G E N D A 1. Call to order 2 . Roll call 3 . Public input (7: 25 PM or as soon thereafter as passible) PUBLIC HEARING (7:30 PM or as soon thereafter as possible) 4 . Public hearing to consider the negative declaration for the Gateway Tank Project; possible action UNFINISHED BUSINESS NEW BUSINESS S . Tahoe Donner Pipeline Replacement Project: a) Status report b) Consideration of approving invoices and progress pay estimates c) Consideration of approving transfer of funds from acquisition fund to general fund 6 . Consideration of engineering proposals from Sauers Engineering and possible award of contract: a) Tahoe Donner Booster Pump Stations b) Telemetry c) Olympic Heights Pipeline Project 7 . Consideration of seeking proposals from contractors to repair water main leaks 8 . Armstrong high pressure pipeline project - consideration of bids and possible award of contract 9 . Consideration of approving organizational restructuring 10. Consideration of extending contract for tree trimming on District electrical right of ways 11. Consideration of scheduling workshop with Bob Rauch 12 . Consideration of approving the 1992 budget calendar ROUTINE BUSINESS 13 . Direction regarding minutes of August 19 , 1991 14 . Correspondence 15. Bills for approval 16. Staff report CLOSED SESSION RETURN TO PUBLIC SESSION ADJOURNMENT -over- post Office Box 309 11570 Donner Fuss Road 0 Truckee, California 9616 NOTE - The complete packet of material relating to the agenda is available for review at the PUD office and at the Truckee library. C E R T I F I C A T I O N I hereby certify that the foregoing agenda has been posted in the District o dice and Government Center, provided to the U. S. Post Office a ;--County Library for posting, and mailed to the Directors and inte "ested parties o August 29, 1991. Susan M. Craig, Deputy Distric lerk REGULAR MEETING September 3, 1991 The regular meeting of the Board of Directors of the Truckee Donner Public Utility District was called to order by President Aguera at 7 : 05 PM in the TDPUD Board Room. ROLL CALL: Directors John Corbett, Richard Curran, James Maass, Patricia Sutton and Joe Aguera were present. EMPLOYEES PRESENT: Ron Reynolds, Maria Martinez, Peter Holzmeister and Susan Craig. CONSULTANTS PRESENT: Bob Churn of SEA, Consulting Engineer Keith Sauers and Counsel John Phelps. OTHERS PRESENT: Catherine Gibbs of the Sierra Sun, Steve Gross and Bill Quisnell. TAHOE DONNER PIPELINE REPLACEMENT PROJECT - STATUS REPORT -- CONSIDERATION OF APPROVING INVOICES AND PROGRESS PAY ESTIMATES - CONSIDERATION OF APPROVING TRANSFER OF FUNDS FROM ACQUISITION FUND TO GENERAL FUND The project is progressing quickly. The main line is almost completely installed on Contract A, including the additions in Change Order No. 1. T & S will be moving their main line pipe crew to Contract C this week. On Contract B, Ford finished on Hansel and Oslo and will be moving to St. Bernard, Pathway and Schussing next. Director Maass moved that Progress Pay Request No. 2 for Contract B in the amount of $422 ,216.92 be approved; seconded by Director Corbett. All Directors, aye, by voice vote. SO MOVED. Director Maass moved, and Director Corbett seconded, that the Board approve payment of SEA invoices in the amount of $109, 366. 73 . All Directors, aye, by voice vote. So MOVED. Director Maass moved, and Director Corbett seconded, that staff transfer $431, 580. 65 from the acquisition fund to the general fund. There was some discussion and, by consensus, the Manager was directed to obtain a statement from the auditors as to the legality of transferring funds in this manner and to also inquire how Prop 55 funds should be handled. Vote on the motion, all Directors, aye. so MOVED. CONSIDERATION OF ENGINEERING PROPOSALS FROM SAUERS ENGINEERING AND POSSIBLE AWARD OF CONTRACT - TAHOE DONNER BOOSTER PUMP STATIONS °- TELEMETRY - OLYMPIC HEIGHTS PIPELINE PROJECT Keith Sauers provided proposals for engineering the Herringbone Booster Pump Station, Northwoods Booster Pump station, Olympic Heights Pipeline projects and for preparing a design report and request for proposals for the telemetry system. if possible, the 9/3/91 Pg 1 environmental review performed by the Truckee Sanitary District will be used. Director Maass moved that, subject to final review by Counsel Phelps, Sauers Engineering be authorized to begin work as proposed; seconded by Director Corbett. (Tahoe Donner Pump Stations, $40, 000; telemetry, no amount stated; Olympic Heights Pipeline, $75, 000. ) All Directors, aye, by voice vote. SO MOVED. By consensus, the Manager was directed to provide a report on facilities fees and how they relate to funding the Northwoods Booster Pump Station. PUBLIC INPUT Director Maass provided the Board with a copy of David Rhodes ' bill showing zero usage from August 13 , 1990 to June 19, 1991 . (Mr. Rhodes came before the Board several meetings ago to protest a bill from the PUD for administrative charges incurred while installing a test meter to check for possible diversion of electricity. ) PUBLIC HEARING TO CONSIDER THE NEGATIVE DECLARATION FOR THE GATEWAY TANK PROJECT; POSSIBLE ACTION The public hearing commenced at 7:40 PM. It was scheduled for the purpose of gathering comments from the public regarding the Gateway Tank Project. Comments received will be considered by staff and 0 consultants in preparing the final environmental assessment, the final assessment will be brought to the Board for adoption after the statutory time has run its course. There was no public comment and Director Maass moved to close the public hearing at 7 :42 PM; seconded by Director Corbett. SO MOVED by consensus. The Manager was directed to inquire of SMUD how and when they use maps in advertising their public hearings. CONSIDERATION OF SEEKING PROPOSALS FROM CONTRACTORS TO REPAIR WATER MAIN LEAKS Staff has been considering the possibility of having contractors perform main line repairs in water lines that are leaking. It was determined that, under the right controls, it may be advantageous for the District to employ contractors for this purpose. The controls were discussed briefly. Director Corbett moved that the Board authorize the General Manager to have specifications and contract documents drawn up for the repair of main line water leaks, and that the General Manager solicit bids and recommend to the Board an award of one or more contracts at a future date. The motion was seconded by Director Maass. All Directors, aye, by voice vote. SO MOVED. The Board agreed that the contract documents should specify the 9/3/91 Pg 2 classification of license required and indicate a response time. After 90 days, the General Manager is to make a report to the Board regarding the program including any recommendations on modifications, continuation or termination of the program. ARMSTRONG HIGH PRESSURE PIPELINE PROJECT - CONSIDERATION OF BIDS AND POSSIBLE AWARD OF CONTRACT The Armstrong High Pressure Pipeline Project .involves constructing a new 990 foot, six inch pipeline that will be served from the high pressure side of the Armstrong Booster Pump Station and replacing 13 services and one fire hydrant. Four bids were received ranging from $81,865 to $99, 122 . Director Corbett moved, and Director Maass seconded, that the contract for the Armstrong High Pressure Pipeline be awarded to the low bidder, Dale Burt, (NOT BURT & BURT) in the amount of $81, 865. All Directors, aye, by voice vote. SO MOVED. CONSIDERATION OF APPROVING ORGANIZATIONAL RESTRUCTURING The Board was asked to consider reallocating work assignments so that all of the PUD's high priority tasks are accomplished in a proper and prompt fashion. A proposed organization chart was presented and explained. Since the District is down two employees to begin with (the two engineers) there would be a net gain of two people. Two of the positions are being proposed as non-bargaining unit positions. Director Corbett moved, and Director Curran seconded, that the Board approve the organization chart as presented (copy attached) . All Directors, aye, by voice vote. So MOVED. Director Maass moved, and Director Corbett seconded, that the General Manager be permitted to finalize the necessary job descriptions and submit them to the Union for the meet and confer process and return to the Board with the final job descriptions and proposed pay rates. All Directors, aye, with the exception of Director Sutton who abstained. SO MOVED. CONSIDERATION OF EXTENDING CONTRACT FOR TREE TRIMMING ON DISTRICT ELECTRICAL RIGHT OF WAYS A tree trimming crew has been working for the District under contract. $33 , 000 was set aside in the 1991 budget for this purpose, these funds will be spent during the next week or so. Staff is recommending that the crew continue trimming trees for an additional seven weeks, or until the weather turns bad, at a cost of approximately $20, 370. Director Maass moved, and Director Corbett seconded, that the tree trimming contract be extended for seven additional weeks, or until the weather turns bad, whichever occurs first, at an additional cost of approximately $20, 370. All Directors, aye, by voice vote. 9/3/91 Pg 3 SO MOVED. By consensus, the Board directed Counsel to investigate and determine who is responsible for damage to District facilities caused by trees located on private property. CONSIDERATION OF SCHEDULING WORKSHOP WITH BOB RAUCH During the February workshop with Bob Rauch it was decided to schedule a third meeting to discuss a mission statement for the District. The cost would be $1,400 plus travel-related expenses. Director Corbett moved that the Board approve the scheduling of a workshop with Bob Rauch on Saturday, October 5 to discuss the District's mission statement at a cost of $1, 40o plus travel related expenses. The motion was seconded by Director Aguera. ROLL CALL: all Directors, aye• So MOVED. CONSIDERATION OF APPROVING THE 1992 BUDGET CALENDAR Director Maass moved, and Director Corbett seconded, that the Board adopt the proposed budget calendar as a guide for preparing the 1992 budget. All Directors, aye, by voice vote. SO MOVED. DIRECTION REGARDING MINUTES OF AUGUST 19, 1991 Director Maass moved that the minutes of August 19, 1991 be approved as presented; seconded by Director Corbett. ROLL CALL: Corbett, Curran, Maass and Aguera, aye; Sutton, no. So MOVED. CORRESPONDENCE Briefly mentioned was the letter from the U. S. Forest Service commenting on LaFinca's tree harvesting plan on property adjacent to a parcel owned by the PUD. BILLS FOR APPROVAL Director Maass moved, and Director Corbett seconded the motion, that the Board approve the bills presented for consideration. All Directors, aye, by voice vote. SO MOVED. STAFF REPORT A complete copy of the staff report has been attached to these minutes for reference. Water meter bill (SB 229) Senate Bill 229 has passed and will require the installation of water meters on all new homes in California constructed after January 1, 1992 . The General Manager will obtain a copy of the bill, copy the Board, and investigate to see if any money has been set aside for meters. 9/3/91 Pg 4 Financial reports Attached to the staff report are the July 1991 financial reports of District operations including the statement of general fund, investment report, water and electric balance sheets, and water and electric income statements. Department of Health Services regulatory fees The state Department of Health Services is attempting to balance its budget by charging fees to special districts. This will, over time, push the District's water rates up. Staff is recommending that the fee appear as a special line item on PUD water bills so it is not confused with the normal costs that make up the rates. By consensus, the Board directed that the matter be placed on an agenda for discussion in the near future. ADJOURNMENT There being no further business before the Board, Director Corbett moved that the meeting be adjourned at 8:48 PM: seconded by Director Maass and passed unanimously. T= PUB C UTILITY DISTRICT J ph` R. Aguera, eside�nt Prepared by -� Susan M. Craig, Deputy District C1 k smc 9/3/91. Pg 5 BOARD OF DIRECTORS GENERAL MANAGER I WATER SUPERINTENDENT ELECTRIC SUPERINTENDENT DIRECTOR OF PLANNING DEVELOPMENT STORK WATER CUSTOMER PUMPHOUSC PLANNER CREW TECHNICIAN AGREEMENT ORDER QUALITY SERVICES SPECIALIST SPECIALIST SPECIALIST REPS SUBSTATION PLANNER SERVICE CREW CONSTRUCTION TECHNICIAN CREW BOARD OF DIRECTORS GENERAL. MANAGER ADMINISTRATIVE FOREMAN OF PURCHASING WATER ELECTRIC DIRECTOR OF SERVICES TECHNICAL AGENT AND SUPERINTENDENT SUPERINTENDENT PLANNING MANAGER SERVICES WAREHOUSEMAN TRUCKLE DONNER PUBLIC UTILITY DISTRICT BILLS FOR BOARD APPROVAL -- SEPTEMBER 3, 1991 TOTAL ELECTRIC WATER DESCRIPTION ________..__.._..___..___.._..__..-----------------------.._________________..___..____.._...._.._--__-- R. W. BECK AND ASSOCIATES 3,378.07 3,378.07 CONSULTING SERVICES FOR NEW CONSTRUCTION GUIDELINES (612.61) MISC (587.30) CREEKSIDE WOODS (464.86) FELTON WOODS (401.70) PROSSER WOODS (505.79) PAYLESS DRUG STORE (805.81) . N. C. P. A. 50.00 50.00 REGISTRATION FOR NCPA MEETING. PORTER, SIMON, GRAHAM, PHELPS AND CUTTITTA 7,401.52 4,648.00 2,753.52 T D PIPELINE REPLACEMENT (12.00) MASTERPLAN (102.00) GATEWAY CABINS (46.00) OLYMPIC HEIGHTS PIPELINE (23.02 ARMSTRONG TRACT IMPROVEMENTS (236.50) MCGLASHAN (23.00 GENERAL REP (6252.00) WALL STREET PROPERTIES (34.50) GATEWAY WATER TANK (207.00) ITIRSCHDALE (181.00) KENDALL DEVELOPMENT (1.1.50) . UTILITY TREE SERVICE, INC. 10,055.15 10,055.15 TREE TRIMMING AND REMOVAL SERVICES. WESCO 3,966.47 3,966.47 CABLE SEALING KIT (197.98) LEXAN COVER (164.89) 0 GLASS METER COVERS (360.36) METERS (3243.24). ------------------------------------ 24,851.21 22,097.69 2,753.52 V` T D P U D STAFF REPORT AGENDA ITEM NO. t August 30, 1991 TO: Board of Directors FROM: Peter L. Holzmeisti�r, General Manager SUBJECT: staff report 1. Water meter bill (SB 299)_ SB 299 has passed both houses of the state Legislature and is waiting for Governor Wilson' s signature. It will require the installation of water meters on all new homes in California constructed after January 1, 1992 . The Governor is expected to sign it. District staff is gearing up to respond to the new requirement. In our 1992 budget we will offer some suggestions for the Board to consider. 2. Financial reports f Attached are the July 1991 financial reports of District operations including the statement of general fund, investment report, water and electric balance sheets, and water and electric income statements. 3. Department of Health Services regulatory fees Please review the attached letter from Carl Lischeske of the California Department of Health Services. There is a trend for the state to balance its budget by charging fees to special districts. This trend will, over time, push our water rates up to support state agencies. The state involvement in water quality is justified in that it has benefits for all of California's citizens. That is also why a broad based revenue source, such as a state tax, has been used to support the service. But now it is unpopular for the state legislature and governor to raise taxes, so a fee is being passed on to special districts. r I think this fee should appear as a special line item on our water ball so it is not confused with the normal costs incurred by our District that make up our rates. PLH/sync ,Attachments OK ss n�h y action,wou d apply to a1I ne 'v'homes i s; , . w yllana.DeBare The'water'meter bill would require installa ' Bee Capitol Bureau lion of meters in all California harries built after Jan.1,1992,at the expense`of the homeowners i �r Sacramento-area officials,fight against man It w6uld'not'require meters:iri already-existing r datory,water met ers.:withered under the heat of homes. . :. -. `Y five years of drought Thursday,as the state As The bill was opposed by all four Sacramento-: q sembly voted.4T-16 to require;uvater meters on , area assemblymen- -,'Sacramento Democrats all new homes in Californta Lloyd Connelly and PhillipIsenberg, Sacra- The,Assembly vote:;was the final legislative mento Republican David Knowles and �tock- hurdle,for SB 229, by state Sen. Daniel Boat- tan Republican Dean'Andal. . . .v,Tight,!D-Concord.The bill goes to Gov. Wit- Con:>ielly argued that Sacramento,'where the' sun,who is expected to sign it. city charter bans.residential water meters,.has "This.is not the answer to our drought prob- managed to cut its water use by other measures lems, but it is an important step," said Assem- such as a three-day-a-week limit`on watering: blyman Steve Peace, D-Chula Vista;who'spon lawns... : . ; ..` ;:' • ti,;._, cored the measure in the lower house. "The city of Sacramento and ciiuntyof Sacra ` "It's been proven'time and time•'again that:: mento ..,.'are willing to conserve'the'amount water meters do.allow greater: efficiency and of water you want us to conserve,!"Connelly -'conservation of.this resource in spite of the,,,• told the Assembly. "You fell us what that oum s fact that some communities would prefer not to ber,is, and we'll meet it.,Well =met'it..to the Have them," said Assemblyman Jim,.Costa, D Fresno " . See METERS,;,back page!A32 in unhappy. Contt bri z , . inued from page Ai .�. � � "We knew this legislation was pending,'and we knew it had a high %Yivieanwhite, Assemblywoman Bev-:probability of passing,but that didn't n,'R Santa Rosa,'argued that., :mean it was the way we wanted it to ing meters would'drive up the go," said Mayor Pauline Roccucci of J of California housing. Backers:...Roseville,,which currently does not B 29 have'said that including'. require water meters, 'tlrs in new'homes'will;cost less. Sacramento Mayor Anne Rudin 100,1,but opponents predict t said the city dropped its formal oppo- i r stmorer` , -..` sition'to'SB 229 earlier this year in is , sembl ;s ends fa good' -a'pledge by Boatwright . me y),, p g that the meter requirement would'.' ; .d �f'tme tallung about'affordable•R q iri but.we kee adding to not extend to existing homes. 6stt;f,housing,",Hansen said '� But that did not mean the city Was,, governorahas`called for instal happy with the outcome:. :. of-ureters on bath new and old I really think the reasons for do-: s' B.ut Wilson-,`spokesman'.:ing (the bill) were not correct, be- e3 Lee:said that Wilson probabiy : cause we were already saving water,» ' :• Rudin said."I think the reasons were WV sign-the bill into law, even; political." t` oughvidaes not go as far as he if the bill is signed by the governor,' `officials in Sacramento and other 'hekey,difference is'this bill; - areas that haven't required water vpuld`not'make it retroactive'(to ex meters will be faced with a tough di- i ;rig hi3mes) Lee said. 'But hope»¢'; Iemma' -- haw, to bill residents far_ hls is one more piece of the :°'water use when new homes have me- t. !"tasolve California's water. 4 4 le*s- `his is as.far,as the Le is ters and old homes don't. l re is will1.ing too atthis p€lint g Uther jurisdictions'without water- re include the Central Valley cit- officials,in,the Sacramento:.3es of Folsom, Fresno, Bakersfield,. :.area said they.were disappointed but = Madesta;Red bluff, Chico,,Wood-.. i surprised by'the Asserriblyote, ,land andYuba City.,°: en•during'the'fifth-year of a This means some people will be.' ; yghi that forced severe water ra paying on a meter and others won't, Li,Paurig=in'cities such?as Santa Bar and they could be living side by side," i and San Francisco. -g j - Rudin said; ; TRUCKEE DONNER PUBLIC UTILITY DISTRICT STATEMENT OF GENERAL FUND .71LY 31, 1991 HISTORY OF ACTIVITY FOR MONTH: BALANCE IN GENERAL FUND 06/30/91 921,573.39 --------------- RECEIPTS ELECTRIC REVENUE 569,670.29 WATER REVENUE 179,483.96 STANDBY ELECTRIC 2,004.21 STANDBY WATER 901.02 MISC. BILLING REVENUE ELECTRIC 4,687.98 MISC. BILLING REVENUE WATER 1,226.37 CONSUMER DEPOSITS, ELECTRIC 9,728.91 CONSUMER DEPOSITS, WATER 2,547.50 CUSTOMER ADVANCES-CONNECTION FEE 22,641.00 CUSTOMER ADVANCES-OTHER ELECTRIC 98,555.00 CUSTOMER ADVANCES-FACILITIES FEES-ELECTRIC 20,551.00 CUSTOMER ADVANCES-CONNECTION FEE 10,140.00 CUSTOMER ADVANCES-OTHER WATER 2,825.00 CUSTOMER ADVANCES-FACILITIES FEES--WATER 14,249.41 CUSTOMER ADVANCES-METER FEES-WATER 5,535.00 MSC. REVENUE ELECTRIC 88.92 MISC. REVENUE WATER 890.14 DEFERRED CREDIT WRSAD (RESTRICTED 6/30/91) 4,468.08 ELECTRIC LAIF INTEREST INCOME 2ND QUARTER 161,461.96 UNRESTRICT AQUISITION FUNDS 478,300.13 --------------- TOTAL RECEIPTS 1,589,955.38 DISBURSEMENTS ACCOUNTS PAYABLE DISBURSEMENTS 1,072,441.95 TRANS. TO ELECTRIC RESTRICTED FUNDS-INTEREST EARNED 33,309.61 TRANS. TO ELECTRIC :RESTRICTED FUNDS-FACILITIES FEES 20,551.00 TRANS. TO WATER RESTRICTED FUNDS-INTEREST EARNED 105,741.43 TRANS. TO WATER RESTRICTED FUNDS-FACILITIES FEE 14,249.41 TRANS. TO WATER RESTRICTED FUNDS- METER FEES COLL. 5,535.00 --------------- TOTAL DISBURSEMENTS 1,251,828.40 --------------- BALANCE IN GENERAL FUND 07/31/91 1,259,700.87 DISTRIBUTION OF NON-RESTRICTED FUNDS AT MONTH-END: PETTY CASH/CUSTOMER SERVICES OPERATING FUNDS 600.00 TRUCKEE RIVER BANK GENERAL FUND CHECKING 48,370.47 (ACQUISITION CHECKING FUND) 371.37 LAIF GENERAL FUND (NOT RESTRICTED) 1,210,359.03 --------------- 1,259,700.87 Truckee Donner Public Utility District Past Office Box 309 • 11570 Donner Pass Road • Truckee, California 95734 (916) 587-3896 August 28, 1991 11EMOF.ANDUM TO_ Peter L. Holzmeister, General Manager ky� FROM: nary Chapman, Office Manager SUBJECT-. Investment report As of July 31, 1991, the District had the following investment comprised of the funds as detailed. INVESTMENTS YIELD AMOUNT LOCAL AGENCY INVESTMENT FUND 7 .098% 12,379,000.00 iELEC7'IC FUNDS �-------------- REA RESERVE * 19,000.00 GENERAL FUND 1,210,359.03 FACILITIES FEES * 835,215.6� STORK! DAMAGE FUND * 174,129.23 , BUILDING FUND * 612,918.59 --------------- TOTAL ELECTRIC INVESTMENTS 2,851,622.53 WATER FUNDS FACILITIES FEES * 720,101.09 BUILDING FUND * 680,063.74 RESERVE FOR FUTURE METERS * 662,158.14 TAHOE DONNER WATER SYSTEM FUND* 147,034.42 LEST RIVER ST. ASSESSMENT DISTRICT BOND REDEMPTION FUND * 15,458.35 PREPAID CONNECTION FEES * 63,542.27 TELEMETRY RESERVE * 48,046.26 TSA (SAT? II IMPROVEMENT) 29,520.52 ACQUISITION FUND * 7,156,452.68 --------------- TOTAL WATER !INVESTMENTS 9,527,377.47 --------------- TOTAL DISTRICT INVESTMENTS -12,379,000.00- * RESTRICTED FOR SPECIFIC USE PER BOARD RESOLUTIONS 4 x * TRUCKEE DONNER P.U.D. * ' ELECTRIC BALANCE SHEET FOR PERIOD ENDING JULY 31, 1991 CURRENT LAST YEAR Y-T-D AMOUNT Y-T--D AMOUNT A S S E T S UTILITY PLANT 8,524,658.80 8,046,031.50 RESTRICTED FUN➢S ADMINISTRATIVE BUILDING LEASE FUNDS 38?,58?.50 286,721.95 EMPLOYEE DEFERRED COMPENSATION-ICMA 294,841.98 180,127.44 REA RESERVE FUND 15,000.00 13,000.00 FACILITIES PEES 835,215.68 667,122.36 STORM FUND 174,129.23 160,515.66 BUILDING FUND 612,918.59 615,058.65 TOTAL RESTRICTE➢ FUNDS 2,323,692,98 1,928,546.06 20.5+ % CURRENT ASSETS GENERAL FUNDS 1,259,329.50 1,198,405.48 ACCOUNTS RECEIVABLE, NET 435,056.53 447,426.53 DUE FROM EATER 541,507.33 151,683,06 MATERIALS AND SUPPLIES 30?,809.49 282,048.27 INTEREST INCOME RECEIVABLE 18,573.50 18,797.67CR PREPAID EXPENSES AN➢ OTHER 91,502.82 92,082.67 TOTAL CURRENT ASSETS 2,653,779.17 2,152,848.34 23.3+ % UNAMORTIZED DEBT DISC AND ISSUE COSTS 156,919.00 164,732.00 PRELIMINARY SURVEY COSTS AND OTHER 3,141.20 3,030.41 TOTAL ASSETS 13,662,191.15 12,295,188.31 11.1+ TRUCKEE DONNER P.U.D. ' ELECTRIC BALANCE SHEET FOR PERIOD ENDING 3ULY 31, 1991 CURRENT LAST YEAR Y-T-D AMOUNT Y-T-D AMOUNT E Q U I T Y & L I A B I L I T I E S -------------------------------------- RETAINED EARNINGS 8,500,914.45 7,696,924.50 DEBT ADMINISTRATIVE OFFICE BUILDING LEASE 2,840,000.00 2,895,000.00 REA 96,573,52 118,573.52 IDAHO FIRST - IBM COMPUTER LEASE 40,607,01 62,452.00 LINE TRUCK UNIT 10 173,280.32 .00 TOTAL DEBT 3,150,460.85 3,076,025,52 2.4+ CURRENT LIABILITIES ACCOUNTS PAYABLE 815,534.27 690,385.88 CONSUMER DEPOSITS 166,567.13 170,745.79 ACCRUED INTEREST PAYABLE 111,741.16 110,141.00 DEFERRED STANDBY FEES .00 .00 ACCRUED COMPENSATION & RELATED COSTS -»47,145.85 26,997-32 TOTAL CURRENT LIABILITIES 1,141,008.41 998,269.99 14.3+ X. CONSTRUCTION ADVANCES 574,965.46 343,840.86 EMPLOYEE DEFERRED COMPENSATION - ICMA 294,841.98 180,127.44 TOTAL EQUITY AND LIABILITIES 13,662,191.15 12,295,188.31 TRUCKEE DONNER P.U.D. k } ELECTRIC INCOME STATEMENT FOR PERIOD ENDING JULY 31, 1991 CURRENT LAST YEAR Y-T-D AMOUNT Y-T-D AMOUNT OPERATING REVENUE RESIDENTIAL 1,911,823.61 1,736,145.07 COMMERCIAL 1,289,493.69 1,317,17S.62 LARGE COMMERCIAL 327,501.44 360,306.52 SALES TO PUBLIC AUTHORITIES 54,684.18 50,227.47 FUEL CHARGE 98,407.31 305,834.56 INTERDEPARTMENTAL 30S,769.42 257,859.95 -------------- -------------- TOTAL ENERGY SALES 3,987,679.65 4,027,S49.19 MISC OPERATING REVENUE 65,041,59 63,500.00 MISCELLANEOUS RENTS 25,292.43 24,862.16 STANDBY REVENUE 25,287.50 26,385.00 INTERDEPARTMENTAL RENT 67,213.44 32,669.00 TOTAL OPERATING REVENUE 4,170,514.61 4,174,96S.35 ERATING EXPENSES PURCHASED POWER 2,856,10i.30 2,804,617.58 DISTRIBUTION OPERATIONS 282,596,70 188,329.92 DISTRIBUTION MAINTENANCE 55,650.23 65,084.47 CUSTOMER ACCOUNTING & INFORMATION 166,071.50 167,104.66 ADMINISTRATION & GENERAL 359,056.52 457`,541.92 DEPRECIATION 218,717.06 213,022.07 OTHER OPERATING EXPENSES 39,698.19CR 103,176.40 TOTAL OPERATING EXPENSES 3,898,495.12 3,998,877.02 NET OPERATING REVENUE 272,019.49 176,088.33 OTHER REVENUE (EXPENSE) INTEREST INCOME 137,872.67 135,799.18 INTEREST EXPENSE 145,820.04CR 145,200.87CR NET REVENUE (LOSS) 264,072.12 166,686.64 * : TRUCKEE DONNER P.U.D. WATER BALANCE SHEET FOR PERIOD ENDING JULY 31, 1991 CURRENT LAST YEAR Y-T-D AMOUNT Y-T-➢ AMOUNT A S S E T 5 UTILITY PLANT 3,124,646.01 1,906,888.84 RESTRICTED FUNDS WATER SYSTEM IMPROVEMENT PROJECT ACQUISITION FUND 7,156,824.05 .00 RESERVE FUND 829,068.23 .00 CAPITALIZED INTEREST FUND 1,409,174.79 .00 FACILITIES FEES 720,101.09 747,649.91 WEST RIVER STREET ASSESSMENT DIST 15,458.35 10,126.52 BUILDING FUND 680,063.74 656,102.55 RESERVE FOR FUTURE METERS 662,158.1_4 570,864.96 TAHOE DONNER WATER SYSTEM FUND 147,034.42 103,075.57 PREPAID CONNECTION FEES 98,062.79 65,566.30 TELEMETRY 48,046.26 44,299.33 TOTAL RESTRICTED FUNDS ll,765,991.86 2,197,685.54 435.4{ %' CURRENT ASSETS GENERAL FUNDS .00 .00 WEST RIVER STREET ASSESSMENT DIST .00 4,792.91 ACCOUNTS RECEIVABLE, NET 97,414.34 50,492,80 DUE FROM ELECTRIC 541,507.33CR 151,683.06CR MATERIALS AND SUPPLIES 85,599.10 75,999.39 INTEREST INCOME RECEIVABLE 73,728.42 48,884.67 PREPAID EXPENSES 78,499.81 72,338.65 TOTAL CURRENT ASSETS 205,865.66CR 100,825.36 304.2- % UNAMORTIZED DEBT DISC AND ISSUE COST 613,901.60 .00 TOTAL ASSETS 15,298,673.81 4,205,399.74 263.8t % TRUCKEE DONNER P.U.D. WATER BALANCE SHEET FOR PERIOD ENDING JULY 31, 1991 CURRENT LAST YEAR Y-T-➢ AMOUNT Y-T-D AMOUNT E Q U I T Y & L I A B I L I T I E S -------------------------------------- RETAINED EARNINGS 3,560,508.76 3,756,732.62 DEBT WATER SYSTEM IMPROV PROJECT LEASE 10,510,000.00 .00 BACKHOE LEASE .00 .00 UTILITY TRUCK UNIT 3 58,728.24 .00 TOTAL DEBT 10,568,728.24 .00 100.0+ X. CURRENT LIABILITIES ACCOUNTS PAYABLE 636,638.18 49,350,47 CONSUMER DEPOSITS 31,249.96 33,122.74 ACCRUED INTEREST PAYABLE 124,896.46 .00 DEFERRED STANDBY FEES .00 .G0 0 ACCRUED COMPENSATION & RELATED COSTS --- '-- 22,025.22 15,7a5.44 TOTAL CURRENT LIABILITIES 814,809.82 97,928.65 732.0+ X. CONSTRUCTION ADVANCES 354,626,99 350,738.47 TOTAL EQUITY AND LIABILITIES 15,298,673.81 4,205,399.74 263.8+ X` * * TRUCKEE DONNER P.U.D. 'RATER INCOME STATEMENT FOR PERIOD ENDING 3ULY 31, 1991 CURRENT LAST YEAR Y-T-D AMOUNT Y-T-D AMOUNT OPERATING REVENUE RESIDENTIAL 760,667.49 547,150.91 COMMERCIAL 132,271.05 126,835.40 INTERDEPARTMENTAL 320.18 320.18 -------------- -------------- TOTAL WATER SALES 893,258.72 674,306.49 HYDRANTS 31,194.75 29,719.38 MISC OPERATING REVENUE 12,278.88 24,015.07 MISCELLANEOUS RENTS 847.12 .00 STANDBY REVENUE 10,507.50 .00 TOTAL OPERATING REVENUE 948,086.97 728,940.94 OPERATING EXPENSES PUMPING - POWER PURCHASED 312,057,25 275,160.49 DISTRIBUTION OPERATIONS 237,009.42 114,650.45 DISTRIBUTION MAINTENANCE120,013,55 121,355.66 91 CUSTOMER ACCOUNTING & INFORMATION 50,201.85 , 6.7 ADMINSTRATION & GENERAL 290,547.11 193,266. 4 INTERDEPARTMENTAL RENT 67,213.44 32,669.00 DEPRECIATION 66,369,80 65,129.92 OTHER OPERATING EXPENSE 5,398.63 7,346.60 TOTAL OPERATING EXPENSE 1,148,811.05 856,955.77 NET OPERATING REVENUE 200,724.08CR 128,014.83CR OTHER REVENUE (EXPENSE) INTEREST INCOME 245,598.11 81,970.41 INTEREST EXPENSE 125,860.68CR 1,597.51CR EXTRAORDINARY INCOME 28,522.55 335,818.20 NET REVENUE (LOSS) 52,464.10CR 288,176.27 .................... STATE OF CALIFORNIA-HEALTH AND WELFARE AGENCY FETE G°�IL50N.Governor DEPARTMENT OF HEALTH SERVICES OFFICE OF DRNKING WATER 8455 JACKSON ROAD,SUITE 1X ���r i 1 91, SACRAMENTO,CA 958Z U (916)739-4W4 COPIES TO: ------------ August 26, 1991 TO: LARGE WATER SYSTEMS IN THE SACR.AMENTO DISTRICT- SUBJECT: NEW REGULATORY FEES The Legislature adopted a bill (AB 2158) last year that requires water systems to pay a fee to the Department of Health Services (Department) to defray part of the regulatory cost for the drinking water program. The fee was set at $0. 50 per service connection for 1990 as an interim measure, but the bill instructed the Department to set up a permanent fee schedule that would take into account the cost of regulating different types and sizes of water systems. The regulations implementing the fees are being developed at this time, and should be available for public review and comment within the next two to three months. We will send you a copy of the proposed regulations as soon as they become available. The purpose of this Letter is to notify you that the fees established under the new regulations may be substantially different from last year. The changes will be especially pronounced for very small and very large water systems. Systems with less than 1, 000 service connections paid fees ranging up to $500 last year; under the new fee schedule these systems will pay between $1, 000 and $4 , 000 depending on system complexity. Very large water systems (e.g. , the City of Los Angeles or East Bay Municipal Utility District) will have dramatic reductions in fees. The fees for most systems in the Sacramento District will stay about the same or increase. We will not be able to precisely determine the fees for any water systems until the fee regulations are promulgated. We hope, however, that this information is useful in developing your budget for next year. As a final note, please be aware that the concept of "fee for service" was mandated by the Legislature to be the basis for the regulatory fees. This is the reason for the relatively high cost per customer for small systems, and the relatively low cost per customer for large systems. Although controversial, this concept Large Water Systems Subject: Regulatory Fees August 26, 1991 cannot be overturned during the regulation review process, but can only be changed by the legislature. We therefore encourage you to contact your State legislators should you have any objections to this concept, as the Department has no authority to change it. Sincerely, Carl Lischeske, P.E. District Engineer cc: Local Health Departments