HomeMy WebLinkAbout14 District code title 3 Agenda Item # 14
TRUCKEE DONNER
Public Utility District
WORKSHOP
To: Board of Directors
From: Mary Chapman
Date: May 21, 2008
Subject: 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. Finally, at the May 7, 2008 meeting, the Board reviewed proposed
revisions to the Power Supply section of Title 3.
3. NEW INFORMATION
Included in this workshop are the remaining revisions to Title 3 including the
previously list sections There have been many revisions to the code including
formatting changes, clarification of wording and in some cases changes to the
policies and procedures.
Attached are four documents for your review:
1) Highlights of the major changes;
2) A list of the minute orders and resolutions that will be replaced by Board action
to revise this Title;
3) A draft version of Title 3 incorporating all of the proposed revisions; and
4) A redline copy comparing the proposed changes to the original text.
Copies of the proposed changes to Title 3 were given out to all management and
many bargaining unit employees. I have received comments from many of them and
incorporated most of their suggestions into the revised document. John Ulrich's
proposed revisions have also been included.
4. FISCAL IMPACT
There is no direct fiscal impact due to the proposed revisions to Title 3.
5. RECOMMENDATION
Review the proposed policy revisions and provide staff with comment.
Mary Cha an, Umin=strativeSe�rvices Michael D. Holley, General Manager
Manager
ITEM 1
TITLE 3: Highlights of Major Changes
CHAPTERS:
3.01 Financial Goals
• Review 10 year Financial Master Plan every year
• Change to preparing the operating budget every two years instead of each year
• Change from a 5 year to a 10 year Capital Improvement Plan
• Review financial goals every year
• Review facilities fees every year
• Establish a vehicle and equipment reserve fund
3.02 Budget Control
• Change from providing monthly financial statement and budget report to a semi-
annual presentation to the Board.
3.04 Auditing
• Expanded Auditing section
3.05 Government Accounting Standards Board (GASB)
• Created new language for this section
3.06 Electric Supply Procurement
Total rewrite of Electric Supply Procurement (was called Purchased Power)
3.08 Purchasing
• Cleaned up and clarified language
• Increased Department Head purchasing authority from $5,000 to $10,000 per
purchase
• Added controls for cost and change order cost overrun authorization
• Added additional examples of types of "professional services"
• Added recently approved section on the Process and Procedure for Retention of
Consulting Services
• Moved change order section and contractor insurance requirements from Section
3.28 to this section and clarified procedures
• Increased contractor insurance requirements
3.10 Capitalization Policy
• Added section allowing capitalization of many "like or similar" items where the
individual prices are less than the capitalization limit but the total is greater
3.12 Accounts Receivable
• Changed from using the word "sundry" to "miscellaneous"
• Added wording that customers making payments on delinquent accounts would not
be added to a write-off list unless they stop making payments
ITEM 1 (Con't)
3.16 Accounts Payable
• Updated and clarified language; deleted old processes not used anymore and
added new processes
• Improved processes, authorizations and internal controls
• Modified reporting so that financial statements and budget reports will not be
included in the monthly Treasurer's Report but will be reviewed with the Board
each six months after the close of the June and December financial records. All
other financial reports will continue as before.
• Clarified positions that can act in the absence of the Treasurer and who will be
considered a "Board Authorized Designee"
3.20 Investments
• Updated banking information
3.24 Restricted Funds
• Clarified types of Restricted Funds
• Clarified that interest earnings on reserve funds could be used to make the
principal and interest payments on the associated loan
3.28 Contract Management
• Deleted section 3.28; moved and updated subsections on Change Orders and
Contractors Insurance to section 3.08
3.32 Standby Charges and Assessment Districts
• Updated language to match processes in place. The District uses a third party to
process the DL Assessment District and the Community Facilities District activity
including sending the assessment data to the counties and sending out the
delinquency letters. The District works very closely with them to provide
information and monitor delinquency activity.
ITEM 2
TITLE 3: Minute orders and resolutions to be replaced with a new resolution after
adopting the policy revisions (all references to minute orders and resolutions in the
current code to be revised were included)
CHAPTERS:
3.02 Financial Goals
Resolution 04-39
3.03 Budget Control
Resolutions 95-22 and 96-11
Minute Order 89-43
3.04 Auditing
Minute Order 88-187, 8/1/88, 94-13
3.05 Government Accounting Standards Board (GASB)
No previous language.
3.06 Electric Supply Procurement
Resolutions 97-20 and 03-17
3.09 Purchasing
Resolutions 97-18, 98-07, 99-11
3.10 Capitalization Policy
Resolution 2006-20
3.12 Accounts Receivable
Resolutions 81-10 and 96-11
Minute Order 89-44 and 95-103
3.16 Accounts Payable
Resolutions 91-08, 95-22 and 96-11
Board Direction 12/5/78
3.21 Investments
Resolutions 79-11, 90-16, 95-26, 96-11, 2006-33
3.25 Restricted Funds
Resolutions 88-17, 96-11
3.28 Contract Management
Resolutions 90-31, 9611
Minute Order87-108
3.32 Standby Charges and Assessment Districts
Resolutions 84-44 and 96-11
ITEM 3
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
3.28 Contract Management
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 twowyear.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
Title 3 Page 1
Debt Goals
• Separate debt that is serving development(facilities fees), debt serving current customers
(rates), debt serving a special assessment district (assessments) and debt financed by
billing surcharges . These categories of debt should be separately identified in the budget.
• One-half the debt service for all long-term debt in the aggregate is due in the first ten years
• No more than one half the projected annual facilities fee revenue committed to debt service
• No more than twenty-five percent of general fund revenues committed to debt service
• No debt more than 25 year maturity
• No debt longer than useful life of the project
Cash Reserve Goals - Operations
• Water general fund should have a cash reserve equal to twice the highest month budgeted
expenditure (this will probably be the month in which principal and interest on debt is due)
• Electric general fund should have a cash reserve equal to twice the highest month budgeted
expenditure(This will be the month in which the highest wholesale electric bill is due plus the
highest debt service payment)
• Electric rate stabilization fund (aka Electric Rate Reserve) should maintain a balance of
$3,000,000
Capital Reserve Goals
• There should be a revolving water capital reserve fund in the amount of$4,000,000 to permit
projects to be initiated and funded prior to arrangement of long-term debt or other financing.
• There should bean electric capital reserve fund in the amount of$1,000,000 minimum.
Debt Reserve Goals
• There should be a reserve fund for each debt instrument equal as required by each lender.
• A reserve fund should be established and maintained to pay for vehicle and equipment
purchases as needed. Long term financing"should be used when necessary and the life of
the asset purchased is greater than 15 years.
CHAPTER 3.02
BUDGET CONTROL
Section:
3.02.010 Budget Control
3.02.010.1 In 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
Title 3 Page 2
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 as presented or
schedule the adoption of the annual audit at a future meeting.
3.04.01.4,Publication of Annual Audit-A summary of the annual audit shall be published in the
local newspaper of general circulation within 30 days after completion of the audit and approval by
the Board The complete audit will be made available on the District's website, to the District's
lenders and to any person or organization that requests a copy. Duplication fees will apply.
CHAPTER 3.05
GOVERNMENT ACCOUNTING STANDARDS BOARD (GASB)
Periodically,the Government Accounting Standards Board (GASB)issues new accounting rules for
recording financial transactions that must be implemented by government agencies. Each year,
during the audit presentation process,any known new GASB accounting standards that are required
to be implemented during the current or future years will be discussed with the Board of Directors.
In the absence of GASB accounting rules, the District is required to follow Financial Accounting
Tide 3 Page 3
Standards Board (FASB) accounting rules to record accounting transactions.
CHAPTER 3.06
ELECTRIC SUPPLY PROCUREMENT
Sections:
3.06 General - It is the objective of the District to:
1. Provide an adequate, reliable and high qualityelectric supply and distribution system
to meet current and future needs.
2. Assure that no activities related to energy supply purchase and sales will expose the
District to the possibility of large financial losses in relation to the size of the electric
supply reserve funds.
3. Maintain and implement a long-term energy and load forecast.
4. Maintain and implement an Electric System Master Plan, including the required
facilities to meet the current and future demand and reliable supply.
5. Procure and contract for low cost electric power supplies to reliably meet current and
future loads.
6. Seek power supply from a resource mix that satisfies District Renewable Portfolio
Standard (RPS), Code Section 7.83.
3.06(A) RPS Supply Objectives:
1. Maintain reliable overall energy supply portfolio
2. Minimize adverse impact of acquiring new energy resources on customer electric
rates.
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
Title 3 Page 4
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 must
protect the District from major negative contingencies.
3.06.3 Counterparty Credit Policy
The objective of the Counterparty Credit Policy is to minimize the potential adverse financial
impacts on the District in the event of a defaulting counterparty. The District will strive to use
Joint Power Agencies (NCPA or UAMPS) to check Counterparty Credit and meet the
objective, of this policy.
The policy is to minimize the District's credit exposure and potential adverse financial
impacts by:
1. Establishing credit risk management governance and oversight.
2. Providing a procedure to enable the District to qualify energy suppliers and
transact with approved counterparties in a uniform and equitable manner.
3. Providing counterparty transaction parameters(limits)to control and measure the
District's exposure to any one supplier, and
4. Implementing a mechanism to monitor and report on supply portfolio related
counterparty credit exposure.
Title 3 Page 5
This policy applies to market-based commodity transactions as well as to physical asset-
based transactions, such as transmission capacity and generation ownership.
3.06.4 Transacting Policy
3.06.4(A) Anti-Speculation
Speculative buying and selling of energy products is prohibited. Speculation is
defined as buying energy not needed for meeting forecasted load or selling energy
that is not owned. In no event shall transactions be entered into to speculate on
market conditions.
3.06.4(B) Maximum Transaction Term
The maximum term of any supply transaction, either purchase or sale, shall be ten
years, unless specifically approved by the District Board of Directors, to meet long-
term portfolio planning objectives.
3.06.4(C) Portfolio Performance and Value Reporting
The Electric Utility Manager 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
prescribed 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 shall obtain three or more quotations when making a purchase or sale
transaction and select the best price from a responsible qualified bidder.
3.06A(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.
Title 3 Page 6
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.
6. All transactions must be consistent with'Electric Supply Procurement
policy.
Failure to observe and comply with this Policy when executing energy transactions is
a violation of District Code and is subject to disciplinary action.
3.06.6 Transacting Authority
The General Manager has the authority to purchase and sell energy
products for terms of up to two years under open purchase contracts. Authority to
enter into 'transactions must be based on District Board of Directors approved
contracts such as master agreements, purchase agreements or other contractual
forms. In all cases the District Code provides the final authorization rules and
regulations for energy purchases.
106.7 Conflict of Interest
Personnel involved in transacting and oversight of the District energy supply
resource acquisition products may not engage in financial conflicts of interest, unless
the District Board of Directors are duly informed and it elects to waive such conflicts.
All personnel in procuring or selecting counterparties for contracting or transacting
are required to complete, on an annual basis, the Form 700 Disclosure forms and
submit these forms to the District Clerk. The General Manager is responsible for
routinely reviewing the Form 700 of each personnel engaged in the supply resource
decision-making process for the purpose of identifying potential conflicts of interest.
District Counsel will assist the General Manager in reviewing these forms and
providing legal advice in connection with such reviews.
Title 3 Page 7
CHAPTER 3.08
PURCHASING
Sections:
3.08.010 Bid Procedure for Purchase of Commodities or Equipment Over
$15,000
3.08.020 Procedure for Purchase of Commodities or Equipment Under$15,000
3.08.030 Bid Procedure for Issuance of Service Contracts,Over$15,000
3.08.040 Procedure of Issuance of Service Contracts Under$15,000
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
3.08.010 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 the 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 the local newspaper of general circulation. 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.
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
Title 3 Page 8
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 vendorwill 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.
3.08.020.3 Purchase orders for the purchase of commodities or equipment, with a value of ten
thousand dollars($10,000)or less, may be issued by the General Manager, any Department Head
or the authorized Buyer/Clerk from any approved vendor after considering price,terms and delivery
schedule.
3.08.020.4 Should overruns or change orders expect to exceed authority of the party issuing the
purchase order, the next higher level of authority shall be notified for their approval to continue.
3.08.030 Bid Procedure for Issuance of Service Contracts Over$15,000-Prior to entering into a
contract for services, with a value exceeding fifteen thousand dollars ($15,000), the following
procedures shall be followed:
3.08.030.1 The term"services"includes, but is not limited to,construction, maintenance or repair of
District facilities, but does not include professional services such as legal,engineering,architectural,
financial advisory, energy advisory, computer consulting or environmental services.
3.08.030.2 When the General Manager, a Department Head or the authorized Buyer/Clerk
determines that there is a need to issue a contract for a service to be performed the dollar 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 service,the budget or work order account number to
be charged and the plan and/or specification of the service to be performed.
3.08.030.3 The General Manager shall review the memorandum and, subject to the provisions of
Section 3.08.030.3, if he/she approves of the service, shall cause a public notice to be published in
the local newspaper of general circulation requesting interested parties to submit sealed bids.The
bids shall be publicly opened and read at the date, time and location specified in the public notice.
3.08.030.4 If the service is such that plans and/or specifications need to be prepared by a consultant
and the cost of the consulting service is fifteen thousand dollars ($15,000)or greater, the General
Manager shall submit the matter to the Board of Directors for approval before authorizing the
consultant to proceed.
3.08.030.5 If the service to be contracted is of a nature that will attract bids from local service
providers, the public notice shall be in small display ad form in the local newspaper of general
circulation. In addition, advertisements or notices may be made in appropriate trade journals and
depending on the scope of the project, copies of bid documents will be sent to local plan room
libraries. If the project will not attract local bidders, the ad is to be placed only in the public notice
section of the newspaper and in appropriate trade journals.
3.08.030.6 After the bids have been opened, the General Manager shall submit the matter 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.
Title 3 Page 9
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 their 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;
3.08.0501'(8)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 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.
3.08.050.3 Notwithstanding any other provisions of this Chapter, the District may purchase
materials,equipment, supplies, information technology products, programs and services otherthan
printed material, from the State of California through its procurement program, or jointly with other
public agencies, when the cost of such items is less than fifteen thousand dollars ($15,000)when
Title 3 Page 10
the District determines that it is in its best interests to do so.
3.08.060 Process and Procedure for Retention of Consulting Services
3.08.060A Department Manager determines need for outside consulting services.
3.08.060.2 Department Manager discusses need for consultant with the General Manager(GM).
3.08.060.3 Upon GM approval, Department Manager and departmental staff create a draft Request
for Proposals(RFP)for review by the GM.The draft RFP shall include a proposed scope work and
general description of evaluation criteria to be used in reviewing the proposals. Weighting of the
specific evaluation criteria shall not be included in the RFP. The RFP shall require separate
Technical Proposal and Cost Proposal sealed in separate envelopes.
3.08.060.4 The Contracts Administrative Clerk(CAC)shall begin advertising the RFP. A notice of
the RFP shall be mailed to consultants known to perform the required services and to the A/E
Consultants Information Network. A notice of the RFP shall also be published in the Sierra Sun.
3.08.060.5 A staff committee shall be created to review the proposals. The committee shall include
staff from at least two separate Departments(Electric,Water,Administrative Services). The exact
makeup of the committee shall be determined by the GM and Department Manager seeking the
consulting services.
3.08.060.6 The GM and Department Manager shall finalize the proposal evaluation criteria and the
weighting to be given to each component.
3.08.060.7 After receiving proposals,they shall be held in the custody of the CAC. The CAC shall
distribute copies of all Technical Proposals to the staff committee members for individual review.
3.08.060.8 The staff committee shall then hold a meeting to discuss the various proposals and to
rank the consultants based upon technical merit using the approved evaluation criteria.
3.08.060.9 At the same meeting, after completion of the technical rankings, the Cost Proposals
shall be opened and reviewed by the staff committee members. This review shall ensure that the
manhours, hourly rates, services and indirect costs given in the Cost Proposal correspond to the
level of effort described in the Technical Proposal and to the level of effort expected by the District
to perform the anticipated work.
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
Title 3 Page 11
committee shall also create a proposed outline and list of any questions to be posed to the short
listed consultants.
consultant
After completion nthe oa d ofews,the Directors. Th saff committee
recommendation ondetermine
shall be based upon the
consultant for presentation to t
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 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
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 contractchange orders when the total cost with change
order will be $15,000 or greater.All change orders, resulting in the total cost of the work to be less
than $15,000 shall be approved by the General Manager.
Most contract change orders are such that their consideration by the Board can wait for a regular
Board meeting. However, under certain circumstances it is to the District's benefit to permit the
General Manager to authorize the Department Head to proceed with change order work.
Work can proceed on a contract change order prior to being reviewed by the Board of Directors
under the following circumstances:
3.08.070.1 When a delay in making the decision to change the contract would impose an
unreasonable financial burden on the District.
3.08.070.2 When the need for the change is so compelling that to proceed with the project as
originally planned is impossible or would be financially burdensome on the District.
3.08.070.3 When the amount of the change order price is less than 5% of the original approved
contract price.
Title 3 Page 12
3.08.070.4 The exercise of this prerogative should be done with discretion and in the following
manner:
3.08.070.4(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.
3.08.070.4(B) The memorandum should be signed by the Department Head and General
Manager and forwarded within 48 hours to each Director.
3.08.070.4(C)A contract change order should be prepared for consideration by the Board of
Directors at their next regular meeting or at a special meeting if one is called.
3.08.080 Contractor Insurance Requirements-It is the policy of the Districtto require contractors
and service providers performing work for the District to maintain appropriate insurance naming the
District as an additional insured.
3.08.080.1 The form of insurance shall be broad form comprehensive general liabilitywhich includes
coverage for bodily injury, property damage,and products-completed operations;automobile liability
where applicable;workers compensation. Additionally,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$4,000,000
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.
3.08.080.3 The General Manager shalt, 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.
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.
3.10.020 The following procedure shall be followed in determining if a purchase meets the
necessary requirements for capitalization:
Title 3 Page 13
ASSET CLASS MINIMUM COST
Office Equipment $2,500.00
Tools $2,500.00
Equipment $5,000.00
Structures and Land Improvements $7,500.00
Construction and Remodel Projects $7,500.00
All of the following criteria shall also be used:
1. The normal useful life of the item is
least two
instal years from date of, purchase.
lation)of at least the amounts
2. The item has an acquisition cost(including freight and
listed above in each asset class.
3. The item will not be substantially reduced in value by immediate use.
4. In case of repair, the outlay will substantially prolong the life of an existing fixed asset or
increase its productivity significantly, rather than merely returning the asset to a functioning
unit or making repairs of a routine nature.
5. Land purchases must always be capitalized.
6. In the event that a purchase is made for multiple"like or similar"items that individually are of
lesser value than the minimum cost listed, but collectively are greater than the minimum
cost, the items may be capitalized,
CHAPTER 3.12
ACCOUNTS RECEIVABLE
Sections:
3.12.010 Miscellaneous Account Billings
3.12.020 Delinquent Accounts Receivable
3.12.010 Miscellaneous Account Billings - A miscellaneous account is a bill rendered by the
District to a party to whom the District has rendered a service or provided a good for which the
District charges a fee but shall not be any service or good which is billed to a customer of the District
through the normal monthly utility biding system.
It is the policy of the District to protect the assets of the District by promptly issuing bills for 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 miscellaneous accounts.
3.12.010.2 When any Department of the District notifies the Administrative Services Department that
a billable service or good has been provided,the Administrative Services 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.
Title 3 Page 14
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 regular 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(A) Consumer deposits -deposit refunds with interest; reduction of deposits.
3.16.010.1(B) Customer refunds - credit balances, overpayment of work orders, refund of
connection,facilities fees and tap fees where the customer has decided not to build and the
District staff has not incurred any expense and line extension refunds.
3.16.010.1(C)Contracts-maintenance contracts on District equipment; payments on leased
equipment and land; payments on contracts for software support services; payments for
contracts issued pursuant to Section 3.08.040 of this policy including contracts for consulting
Title 3 Page 15
and construction services.
3.16.010.1(D) District Board of Directors - monthly compensation.
3.16.010.1(E District credit card payments. In the event a dispute occurs,the settlementwill
be handled by the parties involved.
3.16.010.1(F) Employee benefits prior approved by the Board including: deferred
compensation deposit; pension payments(401 a,457 and CaIPERS);vision reimbursements
and any other payment or reimbursement pursuant to the District's agreement with the
International Brotherhood of Electrical Workers, Local 1245 and employee benefits
authorized in the District's Code 4 Personnel for management/exempt employees.
3.16.010.1(G) Expense checks -advances for meetings, seminars, conferences, etc., for
staff, General Manager and Board of Directors. Reimbursement for mileage and approved
out of pocket expenses in accordance with the Districts Title 4 expense reimbursement
policy.
3.16.010.1(H) Insurance - life, health, disability'and dental premiums.
3.16.010.1(1) Payroll - employee checks, payroll transfers, meals, union dues, employee
savings deductions, workers compensation insurance„ payroll tax withholding, employer
taxes and any other employer payroll obligations.
3.16.010.1(K) Postage - Postage including stamps, trust fund, postage meter and bulk
mailing permit deposits.
3.16.010.1(L) Repayment of internal loans approved by the Board Qournal entry only; no
actual check).
3.16.010.1(M) Loans - Repayment of loans that have been approved by the Board of
Directors. Where practicable, the payment will be sent by ACH or wire transfer to the
lending institution on or before the payment due date.
3.16.010.1(N) State Board of Equalization - sales tax, use tax and energy surcharges
collected.
3.16.01,0.1(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(Q)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.
Title 3 Page 16
3.16.010.1(R) Items approved by the Board: nitems
that
been approve by the
Board at a scheduled board meeting (e.g. property Y
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 Tittle 3, Chapter 3.08, Purchasing, to the Administrative
Service Department, the Treasurer shall;be authorized to issue payment for such invoices. In the
absence of the Treasurer, a Board authorized designee shall be authorized to issue payment. Any
payments approved in the absence of the Treasurer will be reviewed by the Treasurer upon his/her
return.
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 assigned to the charges; and that the correct supporting documents are
attached to the invoice. The Accounts Payable Clerk will also verify that invoices greater than
$10,000"have been approved by the General Manager and that invoices $15,000 and greater have
a Board authorized Minute Order attached showing the amount of the approved expenditure or prior
Board authorization for regular District expenditures as listed in Title 3, Chapter 3.16.010, Pre-
authorized Disbursements.
3.16.030.3 After verifying that the above items are in order,the Accounts Payable Clerk will run the
checks for payment and print a check register listing the number of each check issued, the vendor
paid, the amount of the charges and the amount of the total check. In order for the Accounts
Payable Clerk to print checks, the Treasurer, or in his or her absence their Board authorized
designee,will also have to log onto the District's computerized check printing and banking software
and key in their confidential password.
3.16.030.4 Before any payments, ACH transfers or wire transfers are released, the Treasurer will
then verify that the accounts payable check register and the individual invoices match, that the
invoices have been properly processed and that the expenditures have been made in accordance
Title 3 Page 17
with the District's purchasing procedures. The Treasurer or their Board authorized designee then
authorizes the payment,ACH or wire transfer of funds using a secure program linked to the District's
bank account.
3.16.030.6 In the event that a manual check needs to be issued outside of the automated check run
process,the check will require two signatures.The two signatures can be any two Board authorized
checking account signatures.
3.16.030.7 At the second regular meeting held by the Board of Directors, the Board will be
presented with the following reports:
3.16.030.7(A)(1) Accounts payable check register showing all of the checks issued for the
accounting period being presented.The register shall show the date of the check,the check
numbers issued, the vendor names and the amount of the checks.
3.16.030.7(A)(2) Statement of the general fund shoving the beginning checking account
balance,the categories of cash received by the District during the month,a summary list of
the cash disbursements made during the month, any authorized transfers in or out of the
general fund and the ending balance at the end of the month.
3.16.030.7(A)(3) Investment report showing the status of the District restricted funds.
3.16.030.7(A)(4) Fund status report showing the location of all District funds and the amount
on deposit at each financial institution or organization.
3.16.030.7(B)The details of all checks issued and invoices paid shall be available for review
by any Director in the Administrative 'Services Department. The Board shall officially
authorize payment of all disbursements that have been made by the Treasurer and
presented on the accounts payable check register at a regular board meeting, monthly.
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 Districts 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.
3.16.030.8 In the absence of the Treasurer, the General Manager, Assistant General Manager or
Finance and Accounting Manager may act to administer Section 3.16 of the Finance and Accounting
policy as the Board Authorized Designee.
CHAPTER 3.20
INVESTMENTS
Title 3 Page 18
Sections:
3.20.005 LAIF Investments
3.20.008 Wire Transfers
3.20.010 Investment of Surplus Funds
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.
3.20.008 Fund Transfers
3.20.008.1 The Board approved commercial bank (Bank) is requested to honor, execute and
requests for the transfer of funds between
process the District's telephonic,electronic,written or oral
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 employaees of roved a theDthor zed designeesid istrict,the n not the
Board, the General Manager, the Treasurer or the Board pp
mpowered for and on behalf of and in the name of
absence, are hereby authorized, directed and e
the District as follows:
3.20.008.2(A) To execute agreements with the Bank providing for such funds transfers and
to make and verify requests for such transfers, and the Bank shall be entitled to honor and
charge this District for all such requests,when given(or purported to be given)by any one of
the above.
3.20.008.2(B)To make, execute and deliver such other agreements as may be required by
the Bank; and
3.20.008.2(C) To perform or cause to be performed all further acts and execute and deliver
all further instruments which Bank may deem necessary to carry out the purposes of this
policy.
3.20.008.3 The District hereby ratifies and confirms the acts of its officers, agents or employees in
heretofore requesting transfers of funds from this District's accounts with the Bank by wire or
comparable transfer together with any acts performed in relation hereto.
3.20.008.4 That the Clerk of the District is hereby authorized and directed to execute,acknowledge
and deliver a certified copy of the Resolution related hereto to the Bank and any personother to the
or
agency which may require copies, and that the certification of the (Secretary) Clerk
signatures of the above named officers will be binding on this District.
3.20.008.5 That the Bank is authorized to act upon this policy until written notice of the revocation
thereof by a resolution duly adopted by the Board of Directors of this District is delivered to the Bank,
such revocation in no way to affect the obligations of this District to the Bank incurred pursuant to
the terms of this policy prior to receipt by the Bank of such notice or revocation.
Title 3 Page 19
3.20.010 Investment of Surplus Funds
The District Treasurer shall invest surplus funds, both restricted and general, pursuant to the
District's Investment Policy(District Code 3.20.12). A regular accounting of all fund activities shall
be presented to the Board of Directors in the monthly Treasurer's Report.
3.20.012 Investment Policy
3.20.012.1 Investment Authority In accordance with Section 53600 et seq. of the 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. The Treasurer of the District
receives direction and authority to invest any and all District funds from the Board of Directors of the
District.
3.20.012.2 Statement of Objectives Per section 53600.5 of the California Government Code,the
primary objective of the Treasurer shall be to safeguard the principal of the funds under his/her
control when investing public funds. The secondary objective shall be to 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.
Title 3 Page 20
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 and the anticipated needs of the
District, that a prudent person acting in like capacity and familiarity with those matters would use in
the conduct of funds of a like character and with like aims, to safeguard the principal and meet the
liquidity needs of the District.
3.20.012.4 Portfolio Any reference to the portfolio shall mean the total of the District's cash and
securities under management by the Treasurer.
Except for cash in certain Board designated, restricted and special funds,the District
will consolidate cash and reserve balances from all funds to maximize investment
earnings and to increase efficiencies with regard to investment pricing,safekeeping,
and administration. Investment income will 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 the 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.
Title 3 Page 21
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.
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 LAIF 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
Title 3 Page 22
the quarter covered by the report. The report shall include investment activity, including yield and
earnings, and the status of cash by depository.
3.20.012.7 Internal Controls Annually, the Truckee Donner Public Utility District will have an
independent audit by an external auditor. This audit will provide internal control by assuring
compliance with policies and procedures.
3.20.012.8 Parties Authorized to Act in the Event of the Absence of the Treasurer In the event
of the absence of the Treasurer, the following positions are authorized to make necessary and
authorized investments pursuant to District Code 3.20.012;
General Manager
Assistant General Manager
Finance and Accounting Manager
3.20.012.9 Annual Review of Investment Policy The Investment Policy shall be submitted at least
annually to the Board of Directors for adoption. The policy shall be reviewed annuallyto ensure its
consistency with the overall objectives of preservation of principal,liquidity,yield and its relevance to
current law and financial and economic trends. The review will also include the review of the
diversification of the investments in the portfolio and the custodial risk of the portfolio. Any
modifications made thereto must be approved by the Board of Directors.
CHAPTER 3.24
RESTRICTED FUNDS
Sections:
3.24.010 Restricted Funds
3.24.010.1 The Board of Directors will direct staff when monies collected by the District are to be
considered as restricted funds.
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 any time.
3.24.010.1 (B)Restricted Funds are those funds that are restricted by contract or agreement
with the District such as a loan reserve fund.
3.24.010.2 Restricted funds will be invested pursuant to the District's investment policy as described
in Chapter 3.20, Investments.
3.24.010.3 All interest earned upon said restricted funds shall adopt a character of and become part
of the specific restricted account unless otherwise directed by the Board of Directors. In the case of
loan reserve funds whose balances are greater than the reserve requirement,the surplus funds may
be used to offset the principal and interest payments on the loan.
3.24.010.4 Expenditures from restricted funds shall be authorized by the Board of Directors. From
time to time, the Board may pre-approve transfers from restricted funds in advance that pertain to
specific projects or activities.
Title 3 Page 23
3.24.010.5 The District's Treasurer will include a monthly report on the activity of the restricted funds
accounts along with the monthly Treasurer's Report.
CHAPTER 3.32
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 thirth-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 companywho specializes in performing services
listed in section 3.32.010 to work with the Board, District staff and District Counsel to bill and collect
Title 3 Page 24
assessment monies due.
3.32.010.7 All delinquent assessment payments will be required to include any late fees, legal fees
and/or administrative charges allowed to be collected under California State law.
3.32.020.1 Standby Charges - Annually, the Board of Directors will authorize by resolution the
continuance of and the amount of charges for electric and water standby 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.
Title 3 Page 25
ITEM 4
TITLE 3
FINANCE AND ACCOUNTING
CHAPTERS
3.01 Financial Goals
3.02 Budget Control. Deleted:1
3.04 Auditing Deleted:ing
3.05 Governmental Accounting Standards Board(GASB)
3.06 Electric Supply Procurement Deleted:Price or Purchased Power
3.08 Purchasing
3.10 Capitalization Policy
3.12 Accounts Receivable
3.16 Accounts Payable
3.20 Investments
3.24 Restricted Funds
3.28 Contract Management
3.32 Standby Charges and Assessment Districts
CHAPTER 3.01
FINANCIAL GOALS Deleted:BUDGETING
Section:
Deleted:.
3.01flN financial Goals;. Deleted:
3.01.01.1 The following goals are established to promote and maintain the financial strength of Deleted:w
the District: Deleted:e
Deleted:m
Planning Goals Deleted:p
• Review,Water and€iectric�ilasterplans at least every five years Deleted:ourf
• Review t ear inancepasterplan each year Deleted:m
• Prepare tw0�(ear`Operatlno budoet with semi-annual reviews *Deleted:p
• Prepare ten-year.Capital Improvement Plana uedate annually• Review rate'structure and levels at least once every three years m�annualllly
ets and Numbering
• Review Financial Goals everyyeal; etfive
Deleted:c
Revenue Goals Deleted:replacement budget
• Set operating revenues to capture entire cost to provide service plus build and maintain Deleted:three
reserves and satisfy debt coverage ratios Deleted:s
• Review connection charges each year and set the Ito recover all costs
Deleted:n
• Review facilities fees everyyeal;
Deleted:three
Deleted-s
Title 3 Page 1
i
Debt Goals
• Separate debt that is serving development(facilities fees),debt serving current customers
(rates),}debt serving a special assessment district(assessments)and debt financed by Deleted: and
billing surcharges. These categories of debt should be separately identified in the budget.
• One-half the debt service for all long-term debt in the aggregate is due in the first ten years
• No more than one half the projected annual facilities fee revenue committed to debt service
• No more than twenty-five percent of general fund revenues committed,to debt service
• No debt more than 25 year maturity
• No debt longer than useful life of the project
Cash Reserve Goals-Operations
• Water general fund should have a cash reserve equal to twice the highest month budgeted
expenditure(this will probably be the month in which principal and interest on debt is due)
Electric general fund should have a cash reserve equal to twice the highest month budgeted
expenditure(This will be the month in which the highest wholesale electric bill is due plus the
highest debt service payment)
Electric rate stabilization fund (aka Electric Rate•Reserve)should maintain a balance of Deleted:1
mo
•
sz000 000 Deleted:to one years principal and
, interest
Capital Reserve Goals Fom ratted: Font color: Black
• There should be a revolving water capital reserve fund in the amount of$4,000,000 to permit Formatted: Font color: Black
projects to be initiated and funded prior to arrangement of long-term debtor other financing. Formatted: Font:Not Bold
There should be an electric capital reserve fund in the amount of$1,000,000 minimum. Formatted: Font: Not Bold
Formatted: Bulleted+Level: 1+
Debt Reserve Goals aligned at: 0.25"+Tab after: 0.5°
• There should be a reserve fund for each debt instrument equal as required by each lender.,i +indent at: 0.s Widow/Orphan
• A reserve fund Should be established air d'maintained to Day for vehicle and egui2 ent-; control
Durchases as'needed Long term financing should be used when necessary and the life of Formatted: Font: Not Bold,Font
the asset purchased is greater than 15 years.. color: Black
Deleted:¶
(Res.0439)
CHAPTER 3.02, Formatted: Font:Not Bold
Deleted:.010
..BUDGET CONTROL Deleted:Budget
Deleted:Control
Section: Deleted:1
3.03,010 Budget Control Deleted:1
Deleted:
3.01010.1 Jn 2008 for budget year 2009 and each two budget year periods thereafter the General , Deleted:Annually
Manager shall,submilto the Board of Directors a draft budget in the format approved by the Board Deleted:cause to be prepared for
of Directors and following generally accepted accounting standards for utility budgets.
Deleted:ssion
3.01010.2 Budget performance will be reviewed at a Board workshop each six months after the Deleted:1
close of the June and December accounting periods during each fiscal year Mn�get�
Reson
3.01010.3 The General Manager shall cause to be prepared a memorandum accompanying the
semi-annual budget Derformance revievlewhich describes any significant variance from planned Deleted:qureport
Title 3 Page 2
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 Deleted:1
transfers within any one department, provided the total capital budget for that department is not Deleted./
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 Deleted:Deleted by Resolution 9611
Directors for a budget amendment. see section a1s.o3o.7(A).
Deleted:¶
3.01010.5 When Department Heads request the Board to approve proiects_(operating or capital) , 4
they will indicate in the description and presentation how much has been budgeted for the Droiect Deleted:(Minute Order 89-43,Res.
9522,9611)¶
and if the costs are expected to exceed their budget recommend where the excess costs will be Deleted.¶
obtained. ¶
Formatted: Font: Not Bold
CHAPTER 3.04 Formatted: Font: Not Bold
Formatted: Font:Not Bold
AUDITING Formatted, Font:Not Bold
Formatted: Font: Not Bold
Sections: Formatted: Font:Not Bald
3.04.01.1 Hiring of Auditors Periodically,the Board of Directors,will Issue a request for.Droposal Formatted: Font: Not Bold
for the purpose of hiring an audit firm to perform the District's annual audit. Auditors will be Formatted: Font:Not Bold
requested to provide an engagement letter describing services they will perform and a three year - Formatted: Font: Not Bold
financial proposal At the end of the three year period >4he Board will Issue a new request for Formatted: Font:Not Bold
proposal or if the Board decides to continue the services Qf the current auditors,it will ask the then Formatted: Font: Not Bold
current auditors for a proposal to extend their Services.
Formatted: Font:Not Bold
3.04.01.2 Audit Performance—The auditors will audit the District's records according to generally Deleted:will
accepted auditing standards for publicly owned utilities Formatted: Font:Not Bold
Formatted: Font: Not Bold
3.04.01.3 Audit Presentation;;-.The audit firm will present the results of the annual-audit to the
Board of Direg orsat a Board mleeting,in draft form The Board may adopt the audit as presented or , Formatted: Font: Not Bold
schedule the`adoption of the annualaudit at a future meeting.. 'M Deleted:
.Publication of Annual
Audit
r3.04.0't.A Publication of Annual Audit-A summary of the annual audit shall be published in the, Formatted: indent: Left: o First
local newspa)?er of general Circulation within 30 days after completion of the audit and approval by line: o^
the Board The complete audit will be made available on the District's website, to the District's Deleted:/
lenders and to anV person or organization that requests a copy. Duplication fees will apply.
Deleted:0
. Formatted: Font:Arial Bold,No
CHAPTER 3.05 underline J
Deleted:Sierra Sun
GOVERNMENT ACCOUNTING STANDARDS BOARD(GASB) Deleted:.
L- -- -- - - -- - Deleted:(Minute Order 88-187,
-- -- -
Periodically,the Government Accounting Standards Board(GASB)issues new accounting rues or , 8/1/88 and M094-13)¶
recording financial transactions that must be implemented by government agencies. Each year. Formatted: Font: Bold
during the audit presentation process any known new GASB accounting standards that are required Formatted: Font:Bold
to be implemented during the current or future Years will be discussed with the Board of Directors.
In the absence of GASB accounting rules the District is required to follow Financial Accounting Deleted:¶
Formatted: Font:Bold
Title 3 Page 3
IStandards Board(FASB)accounting rules to record accounting transactions.
CHAPTER 3.06
ELECTRIC SUPPLY PROCUREMENT Deleted:PURCHASED PowER
Sections:
3.06 General-It is the objective of the District to:
1 Provide an adequate reliable and high quality electric supply and distribution system• Formatted: Bullets and Numbering
to meet current and future needs.
2 Assure that no activities related to energy supply purchase and sales will expose the
District to the possibility of large financial losses in relation to the size of the electric
supply reserve funds.
3 Maintain and implement a long-term energv and load forecast
4 Maintain and implement an, Electric System Master Plan, including the required
facilities to meet the current and future demand and reliable supply.
5 Procure and contract for low cost electo power supplies to reliably meet current and
future loads.
6 Seek power supply from a resource mix that satisfies District Renewable Portfolio
Standard(RPS),Code Section 7.83.
3.06(A)RPS Supply ObJectives:
1 MalIntaih reliable overall energy supply portfolio Formatted: Bullets and Numbering
2 Minimize ai verse Impact of acquiring new energy resources on customer electric
ri�tBS.
3 Renewable resources are defined as non-fossil fueled electric generating
resources induding hydroelectric pursuant to Section 398 4(h) (1) of the
California-TSB 1305.
3.06(j)RPS Supply Target:
1 Strive to include qualifying resources to meet projected demand. • Formatted: Bullets and Numbering
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` Formatted: Bullets and Numbering
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
Title 3 Page 4
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 Formatted: Bullets and Numbering
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 Manaaer is responsible for implementing the Electric Supply, Formatted: Bullets and Numbering
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 must
protect the District from major negative contingencies.
3 06 3 Counterparty Credit Policy
The objective of the�ounterparty Credit Policy is to minimize the potential adverse financial
impacts on the District in the event of a defaulting counterparts The District will strive to use
Joint Power Agencies (NCPA or UAMPS) to check Counterparty Credit and meet the
obiective of this policy.
The policy is to minimize the District's credit exposure and potential adverse financial
impacts by:
1 Establishing credit risk management governance and oversight. - Formatted: Bullets and Numbering
2 Providing a procedure to enable the District to qualify energy suppliers and
transact with approved countemarties in a uniform and equitable manner.
3 Providing counterpartytransaction parameters(limits)to control and measure the
District's exposure to any one supplier,and
4 Implementing a mechanism to monitor and report on supply portfolio related
countemarty credit exposure.
Title 3 Page 5
This policy applies to market based commodity transactions as well as to physical asset-
based transactions such as transmission capacity and generation ownership.
3.06.4 Transacting Policy
3.06AA)Anti-Speculation
Speculative buying and selling of energy products is prohibited. Speculation is
defined as buying energv not needed for meetina forecasted toad or selling energv
that is not owned In no event shall transactions be entered into to speculate on
market conditions.
3 06AB)Maximum Transaction Term
The maximum term of any supply transaction either purchase or sale shall be ten
years unless specifically approved by the District Board of Directors,to'meet long-
term portfolio planning obiectives.
3 06 4(C)Portfolio Performance and Value Reporting
The Electric Utility Manager 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
prescribed by the District Board of Directors then the General Manager shall inform
the Board of this fact and recommend actions.
3 06AD)Compg®titive Process
Whenever oosslble the Electric Utility Manager with the assistance from NCPA or
UAMPS_shall obtain three or more''quotations when making a purchase or sale
transaction and select the best price from a responsible qualified bidder.
3.0%4 E)Oversight
The Electric Will ty 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.' Formatted: Bullets and Numbering
credit exposure transaction compliance and monitor risk limit
compliance.
2 The Electric Utility Manager shall make recommendations to the General' Formatted: Bullets and Numbering
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 pavment accuracy,reporting findings to the
General Manager.
Title 3 Page 6
3.06.5 Authorized Transacting Products Formatted: Bullets and Numbering
Deleted:¶
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. ¶
4
Only the Electric Utility Manager, with General Manager counter signature, is V
authorized to perform a District energy transaction: sections:¶
3.06.010.Contracts Regarding the
1 All transactions must be committed by authorized transaction personnel.- Purchase of Wholesale Power A
2 All transactions must be with approved counterparties with executed and 3.06.010 The District has entered into
Board approved contracts. a contract with Constellation Power
Source,Inc.that includes a monthly
3 All transactions must be with approved counterpallies with adequate shaped block purchase designed to
available credit. meet the Districts average projected
load for each month and for a putfcall
4 All transactions must be committed over recorded phone Ilnes or via portion.The monthly shaped block
electronic mail. purchase is at a fixed price,while the
put/call option is based on an index.
5 All transactions must be U allowed transaction products. The purchase of power and energy on
6 All transactions must be eori tent with Electric Supply Procurement an index places a price risk on the
District which can be managed by
op IjCV• purchasing financial instruments and
or physical instruments.¶
Failure to observe and cofflUly with this Policy when executing energy transactions is ¶
3.06.010.1 The Power Supply
a violation of District Code and is subject to disciplinary action. Engineer of the District,in
consultation with staff of Northern
California Power Agency and with the
3.06.6 Transacting Authority approval ofthe District General
Manager,is authorized to execute
financial and or physical contracts
The General'° Manager has the authority to purchase and sell energy which manage the price risk of the
power and energy purchased from
products for terms of up to two years under open purchase contracts. Authority to the market subject to the following
enter into transactions must be based on District Board of Directors approved terms and conditions.q
contracts such as master agreements purchase agreements or other contractual ¶
forms In all"cases the District Code provides the final authorization rules and 3.06.010.1(A) A minimum of two
telephone quotes shall be secured
regulations for energy[purchases. from the market..Such quotes shall
be recorded on the transaction
memorandum which shall be
3.06.7 Conflict of Interest prepared to document the actions
leading up to purchase of the
contract.¶
Personnel involved in transacting and oversight of the District enerciv supply ¶
resource acauISition products may not engage in financial conflicts of interest,unless 3.06.010.1(B) The Power Supply
Engineer shall consult with the
the Dil ct Board of Directors are duly informed and it elects to waive such conflicts. appropriate staff of the Northern
All personnel in procuring or selecting counterparties for Contracting or transacting California Power Agency regarding
the desirability to seek quotes and
are required to complete on an annual basis the Form 700 Disclosure forms and shall again so consult after receipt of
submit these forms to the District Clerk.The General Manager is responsible for the two quotes.These consultations
shall be documented in the
routinely reviewing the Form 700 of each personnel engaged in the supply resource transaction memorandum.¶
decision-making process forthe vuroose of identifying potential conflicts of interest. __=Secti°n creak(c°ntmuous}___-
3 District Counsel will assist the General Manager in reviewing these forms and .06.010.1(c) In no event shall any
providing legal advice in connection with such reviews. single contract entered into under
authority of this policy extend fora
period of greater than three months.¶
I : ¶ F..
Formatted: Font:Not Bold
Title 3 Page 7
CHAPTER 3.08
PURCHASING
Sections:
I 3.08.010 Bid Procedure for Purchase of Commodities or Equipment Over Formatted: Right: 0"
15 000
3.08.020 Procedure for Purchase of Commodities or Equipment Under$15,000
3.08.030 Bid Procedure for Issuance of Service Contracts Over$15,000
3.08.040 Procedure of Issuance of Service Contracts Under$15,000 Deleted:o
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 Reguirements
3.08.010 Bid Procedure for Purchase of Commodities_oSEquipmentQver$15,000 -Prior to Deleted:f
issuing a purchase order for the purchase of any commodity or eauipmentthe dollar value of which Deleted:o
i4fifteen thousand dollars($15,000)or greater,the provisions of the Public Contract Code shall be Formatted: Font:Anal Bold,No
followed,as more fully described in the following sections. underline
Deleted: item
3.08.010.1 When apepartmentL-lead or the authorized Buyer/Cleric determines that there is a need Deleted:exceeds
to issue a purchase order the amount of which fifteen thousand dollars ($15,000) or greater,
he/she shall notify the General Manager by memorandum which states the purpose of the purchase, Deleted:d
the budget or work order account number to be charged and the specification of the item or items to Deleted:h
be purchased. Deleted:exceeds
I3.08.010.2 The General Manager shall review the memorandum and, if he/she approves the
request, shall cause a public notice to be published in the local newspaper of general circulation_ Deleted:sierra sun
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 Deleted:or when selling surplus
display ad in the iocal newspaper of general circulation If the equipment or material to be purchased materials,equipment or property,
is not available locally,the ad shall be placed only in the public notice section of the newspaper. Deleted:sierra sun
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.
Formatted: Font:Aria'Bald,No
3.08.020 procedure for Purchase of Commodities or Equipment Under $_15,000 - Prior to underline
issuing a purchase order for the purchase of any commodity or equipment, with a value which Deleted:the dollar value of
exceeds tear thousand dollars 10 00 ), but is_less than fifteen thousand dollars($15,000), the_ _, Deleted:five
following procedures shall be followed; Deleted:$5,000
Deleted:.
3.08.020.1 The General Manager,apepartment1 ead or the authorized Buyer/Clerk is authorized to Deleted:d
issue a purchase order as defined in Section 3.08.020 after having first secured three informal
Deleted:h
Title 3 Page 8
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 priorto 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 Deleted:date.
3.08.020.3 Purchase orders for the purchase of commodities or equipment with a value of en, Deleted:the dollar value of which is
thousand dollars( 10 00 or less,may be issued by the General Manager,any,�epartmenth-lead \ less than
or the authorized Buyer/Clerk from any approved vendor after considering price,terms and delivery Deleted:five
schedule. Deleted:$5,000
Deleted:d
.3.08.020.4 Should overruns or change orders expect to exceed authority of the party issuing the Deleted:h
purchase order,the next higher level of authority shall be notified for their approval to continue. Formatted: Font:gold
3.08.030pid Procedure for Issuance of Service Contracts Over$15,000-Prior to entering into a I
contract for services, with a value exceeding fifteen;thousand dollars ($15,000), the following Formatted: Font:Arial Bold,No
procedures shall be followed,
the dollar value of which
3.08.030.1 The term"services"includes,but is not limited to,construction,maintenance or repair of
IDistrict facilities,but does not include professional services such as legal,engineering,architectural, Deleted:.
financial advisory,energy advisory,computer consulting or environmental services.
3.08.030 2 When the General Manager, a pepartment head or the authorized Buyer/Clerk Deleted:1
determines that there is a need to issue a contract fora service to be performed the dollar amount of Deleted:d
which isfifteen thousand dollars,($15,000)or greater,he/she shall notify the General Manager by Deleted:h
memorandum which states the purpose of the service,the budget or work order account number to Deleted:exceeds
be charged and the plan and/or specification of the service to be performed.
3.08.030 3 The General Manager shall reyiew,the memorandum and, subject to the provisions of Deleted:2
Section 3.08.030.3,if he/st4approves of the service,shall cause a public notice to be published in
the local new§paper of gene at circulatiorL requesting interested parties to submit sealed bids.The Deleted:sierra son
bids shall be publicly opened and read at the date,time and location specified in the public notice.
3.08.030AIf the service is such that plans and/or specifications need to be prepared by a consultant Deleted:3
and the cost of the consulting service ififteen thousand dollars($15,000)or greater,the General Deleted:exceeds
Manager shall submit the matter to the Board of Directors fora rova before authorizing the Deleted:consideration
consultant to proceed.
3.08.030,55 If the service to be contracted is of a nature that will attract bids from local service Deleted:4
providers the public notice shall be in small display ad form in the local newspaper of general Deleted:contractors
circulation.In addition,,advertisements or notices may be made in appropriate trade journals and Deleted:sierra sun.
depending on the scope of the project copies of bid documents will be sent to local plan room Deleted:the consultant will Place
libraries. If the project will not attract local bidders,the ad is to be placed only In the public notice
section of the newspaper and in appropriate trade ioumals. Deleted:the
3.08.0301 After the bids have been opened,the General Manager shall submit the matter to the Deleted:s
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.
Title 3 Page 9
i
3.08.030J The General Manager shall establish procedures to properly manage the process of Deleted:s
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 Deleted:
contract for a service with a valueless than fifteen thousand dollars($15,000),the following steps Deleted:of
shall be followed-, Formatted: Font:Arial Bold,No
underline
3.08.040.1 The General Manager shall cause plans and/or specifications to be prepared. Deleted:the dollar amount of which
is
3.08.040.2 Three informal telephone quotes shall be secured in writing. In securing quotes, the Deleted:. 71
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 responsive service
provider aking into consideration price and completion date._:_ Deleted:contractor
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 expectt10 cause the service contract to become Formatted: Font: Bold
$15,000 or greater, the General Manager shall notify the Board of Directors for their approval to
continue.
Deleted:¶
3.08.050 Joint Purchasing with the State of California and OtherPublic 6gencies.The District Deleted:(Reso.9611)¶
may purchase materials,equipment,supplies;information technology products and services through ". Deleted:o
the State of California procurement program and jointly with other public agencies in accordance Deleted:P
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:
3.08.050.1(A) The District approves specifications for any purchase of materials, equipment or
supplies,information technology products and services;
3.08.050.1(B)The cost of such items is fifteen thousand dollars($15,000)or more and the purchase
is approve d'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 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.
3.08.050.3 Notwithstanding any other provisions of this Chapter, the District may purchase
materials,equipment,supplies,information technology products,programs and services otherthan
printed material,from the State of California through its procurement program,or jointly with other
public agencies,when the cost of such items is less than fifteen thousand dollars($15,000)when
Title 3 Page 10
the District determines that it is in its best interests to do so.
Formatted: Indent: First line: 0"
3 08 060 Process and Procedure for Retention of Consulting Services
3.08.060.1 Department Manager determines need for outside consulting services. Formatted: Font: 11 pt,Bold
4on,,aFont: "pt
.3.08.060.2 Department Manager discusses need for consultant with the General Manager(GM). Font:(Default)Arial, 11
3 08 060 3_Upon GM approval Department Manager and departmental staff create a draft Request Font:Boldfor Proposals(RFP)for review by the GM The draft RFP shall Include a proposed scope work and Font: (Default)anal, ugeneral description of evaluation criteria to be used in reviewing the proposals. Weighting of the
specific evaluation criteria shall not be included in the RFP The RFP shall require separate Formatted: Font:Bold
Technical Proposal and Cost Proposal sealed in separate envelopes. Formatted: Font:(Default)Arial, 11
3.08.060.4 The Contracts Administrative Clerk(CAC)shall bggip advertising the RFP. A notice of pt
the RFP shall be mailed to consultants known to perform the required services,and to the A/E Formatted: Font:(Default)Arial, 11
Consultants Information Network A notice of the RFP shall also be published in the Sierra Su ptn.
3.08.060.5 A staff committee shall be created to reyiewthe proposals. The committee shall include 1 Formatted: Font: (Default)Anal, 11
staff from at least two separate Departments(Electric Water-Administrative Services). The exact pt
makeup of the committee shall be determined by the GM and Department Manager seeking the
consulting services.
3.08.060.6 The GM and Department Manager shall finalize the proposal evaluation criteria and the Formatted: Font.(Default)Anal, 11
weighting to be given to each component. pt
3.08.060.7 After receiving proposals they shall be held in the custody of the CAC. The CAC shall Formatted: Font.(Default)Arial, 11
distribute copies of all Technical Proposals to the staff committee members for Individual review. pt
3.08.060.8 The staff committee shall then hold a meeting to discuss the various proposals and to Formatted: Font:(Default)Anal, 11
rank the consultants'based upon technical merit using the approved evaluation criteria. pt
3.08.060.9 Atthe sam§m eting,after completion of the technical rankings,the Cost Proposals Formatted: Font:(Default)Arial, 11
shall be opened and reviewed by the staff committee members This review shall ensure that the pt
manhourshourly rates services and indirect costs-given in the Cost Proposal correspond to the
level of effort described in the Technical Proposal and to the level of effort expected by the District
to perform the anticipated work.
3.08.060.10 The staff committee shall meet to discuss both the Technical and Cost Proposals Formatted: Font:(Default)Anal, 11
and determine a short list of consultants to be interviewed by the staff committee. pt
3.08.060.11 After final review of the proposals the staff committee may determine that a given Formatted: Font:(Default)Arial, 11
consultant is clearly superior to the other consultants and may recommend to the GM that interviews pt
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 Formatted: Font:(Default)Anal, 11
consultants and schedule interviews. The date time and duration of the interviews shall be pt
determined by the Department Manager in coniunction with the staff committee. The staff
Title 3 Page 11
committee shall also create a proposed outline and list of any questions to be posed to the short
listed consultants.
3.08.060.13 efter completion of the interviews,the staff committee shall determine a recommended Formatted: Font:(Default)Arial, 11
consultant for presentation to the Board of Directors. This recommendation shall be based upon the Pt
individual consultant's weighted scoring and their overall proposed cost.
3.08.060.14 The Department Manager shall prepare a memorandum and appropriate Formatted: Font:(Default)Arial, 11
documentation for presentation to the Board. The memorandum shall summarize the following: Ipt
• Work to be performed by the Consultant. t. Formatted: Indent: Left: 0.5
• Number of proposals received Tabs: 0.75", List tab+Not at 1.25"
• Ranking of consultants on a technical basis Formatted: Bullets and Numbering
• Recommended Consultant and expected cost thereof
• If the recommended consultant is not the Numbe[1 Wnked firm on technical merit,the
memorandum shall describe the rationale used to develop the recommendation
Formatted: Indent: Left: 0.25"
.3.08.070 Chancre Orders-The District cannot afforq to maintain a large enough construction crew Deleted:q
or all types of service related skills to be able to undertake all`yomects and services in-house. Formatted: Font:Anal sold,No
Therefore, it relies on contractors and service providers to perform work. These contractors and underline
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 require a change in the plans and specification 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 sgecific'abon,2hase of th!2 oiect.
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 with change
order will be$15,000 or greate[.All change orders,resulting in the total cost of the work to be less
than$15,000 shall be_0c)proved'by the General Manager.
Most contract change orders are such that their consideration by the Board can wait for a regular
Board meeting. However, under certain circumstances it is to the District's benefit to permit the
General Manager to authorize the Department Head to proceed with change order work.
Work can proceed on a contract change order prior to being reviewed by the Board of Directors
under the following circumstances:
3.08.07.0.1 When a delay in making the decision to change the contract would impose an Formatted: Font: Bold
unreasonable financial burden on the District.
3.08.070.2 When the need for the change is so compelling that to proceed with the project as
originally planned is impossible or would be financially burdensome on the District.
3.08.070.3 When the amount of the change order price is less than 5%of the original approved
contract price.
Title 3 Page 12
3 08 070 4 The exercise of this prerogative should be done with discretion and in the following
manner:
3.08.070.4(A)A memorandum should be prepared setting forth the precise circumstances
justifying the change in plans and specifications or scope of work and should lust[fy the
change in contract price.
3.08.070.4(B)The memorandum should be signed by the Department Head and General
Manager and forwarded within 48 hours to each Director.
3.08.070.4(C)A contract change order should be prepared for consideration by the Board of
Directors at their next regular meeting or at a special meeting if,one is called.
3 08 080 Contractor Insurance Requirements-It is the policy ofthe Districtto require contractors Formatted: Font:Aria[Bold,No
and service providers performing work for the District to maintain appropnate Insurance naming the underline
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 product completed operations automobile liability
where applicable:workers compensation Additionally,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$4,000,000 Formatted: Font color: Black
in the agaregate 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.
3.08.080.3 The General Manager shall after consulting with the insurance broker of record and/or
an independent risk manager,soecify insurance requirements in contracts he/she is authorized to
left 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.
D�9718,
CHAPTER 3.10 �(R 9911)1
Deleted:¶
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 Deleted:should
expensed in the year purchased in accordance with generally accepted accounting practices.
3.10.020 The following procedure shall be followed in determining if a purchase meets the
necessary requirements for capitalization:
Title 3 Page 13
ASSET CLASS MINIMUM COST
Office Equipment $2,500.00
Tools $2,500.00
Equipment $5,000.00
Structures and Land Improvements $7,500.00
Construction and Remodel Projects $7,500.00
All of the following criteria shall also be used:
1. The normal useful life of the item is at least two years from date of purchase.
2. The item has an acquisition cost(including freight and installation)of at least the amounts
listed above in each asset class.
3. The item will not be substantially reduced in value by immediate use.
4. In case of repair, the outlay will substantially prolong the life of an existing fixed asset or
increase its productivity significantly,rather than merely returning the asset to a functioning
unit or making repairs of a routine nature.
5. Land purchases must always be capitalized.
6 In the event that a purchase is made for multiple alike or similar'items that individually are of- Formatted: Bullets and Numbering
lesser value than the minimum cost listed but collectively are greater than the minimum
cost,the items may be capitalized,
Deleted:(Res.2006-20)¶
CHAPTER 3.12
ACCOUNTS RECEIVABLE
Sections:
3.12.010 Miscellaneous Account Billings Deleted:sundry
3.12.020 Delinquent Accounts Receivable
3.12.010 ,MisCellan2ggs Account Billings-A miscellaneous account is a bill rendered by the rFormatted:
d: Font:Anal Bold,Bold
District to a party to whom the District has rendered a service or provided a good for which the sundry
District charges a fee but shall not be any service or good which is billed to a customer of the District Font:Arias Bold,No
through the normal monthly utility billing system.It is the policy of the District to protect the assets of the District by promptly issuing bills for goods or sundry
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 miscellaneousaccounts. Deleted:
Deleted:sundry
3.12.010.2,When anypepartment of the District notifiesthe Administrative Services Departmentthat Deleted:
a billable service or good has been provided,the Administrative Services Department shall promptly
render a bill to the appropriate party. The miscellaneous account bill is due and payable o-days Deleted:d
after the billing date. Deleted:sundry
Deleted:19
3.12.010.3 Jf thepill remains unpaid after 30 days,the bill shall be considered delinquent and shall Deleted:
be assessed a late charge in accordance with current District policy, and a second request for Deleted:B
payment shall be promptly mailed.
Title 3 Page 14
i
,3.12.010.4,If the bill remains unpaid after 60 days, the General Manager shall cause collection Deleted:3.12.010.4 Deleted by
proceedings to commence,which may include initiation of action at Small Claims Court. Resolution 9611.¶
3.12.010._ The General Manager is authorized to act within his/her discretion to alter the time Deleted:5
periods set forth in this policy when a miscellaneous account customer is cooperating with the Deleted:s
District in resolving an unpaid bill. Deleted:sundry
Deleted:¶
3.12.020 Delinquent Accounts Receivable,-At the end of June and December of each year,the 3.12.010.7 Deleted by Resolution
District Treasurer will have identified all delinquent accounts receivable on closed accounts that are 9611.1
considered uncollectible that exist on the District's records for six months or more. Any customer ¶
(Minute Order 89-44,Reso 9611)¶
who is making payments on his/her delinquent account will not be added to the delinquent account Eunderline
matted: Font:Aria]Bold,No
list until the customer stops making regular Davments
- -- - Formatted: Font:Anal Bold
3.12.020.1 The District Treasurer is authorized to write off delinquent accounts up to 1/6%of
annual amounts billed from the District's accounts receivable balance, Deleted ¶
W
Break(Continuous}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 Deleted:
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, Deleted:¶
Deleted:(Res.8110,M095-103,
° Reso 9611)¶
CHAPTER.3.16 Deleted:4
ACCOUNTS PAYABLE
Sections:
3.16.010 Pre-authorized Disbursements
3.16.020 Bills for Board Approval
3.16.030 Accounts Payable
3.16.010 ire-authorized Disbursements Deleted:
Formatted: Font:Arial Bold,No
3.16.010.1,The District Treasurer shall be empowered to issue checks,with authorization from the underline
approving authority,without prior Board approval for the following items: Deleted:
3.16.010.1(A),Consumer deposits-de osi refunds with interest;reduction of deposits. Deleted:
Deleted:one year
3.16.010.1(B),Customer refunds-credit balances,overpayment of work orders, refund of Deleted:
connection,facilities fees and tap fees where the customer has decided not to build and the
District staff has not incurred any expense an line extension refunds. Deleted:
3.16.010.1(C),Contracts-maintenance contracts on District equipment;payments on leased Deleted:
equipment and land; payments on contracts for software support services; payments for
contracts issued pursuant to Section 3.08.040 of this policy including contracts for consulting
Title 3 Page 15
i
and construction services.
3.16.010.1(DQistrict Board of Directors-monthly compensation. Deleted:
3.16.010.1(E�District credit card payments.In the event a dispute occurs,the settlement wilL Deleted:
be handled by the parties involved. Deleted:to
3.16.010.1(Fl Employee benefits prior approved by the Board including: deferred Deleted:
compensation deposit;pension payments(401 a.457 and CalPERS);,vision reimbursements_ ' Deleted:;
and any other payment or reimbursement pursuant to the District's`agreement with the Deleted:
International Brotherhood of Electrical Workers, Local 1245_and employee benefits
authorized in the District's Code 4 Personnel for management/exempt employees. Deleted:first day hospital deductible
reimbursement;
3.16.010.1(131 Expense checks-advances for meetings,seminars,conferences,etc.,for Deleted:
staff,General Manager and Board of Directors Reimbursement for mileage and approved Deleted:members
out of pocket expenses in accordance with the Districts Title 4 expense reirnbursement
op IICV.
3.16.010.1(Hl.Insurance-life, health,disability and dental premiums. Deleted:
3.16.010.1(11 Payroll -employee checks, payroll transfers, meals, union dues, employee Deleted:
savings deductions, workers compensation insurance_$ vroll tax withholding, employer Deleted:state compensation
taxes and any other employer payroll obligations. Deleted:FICA,SDI,personal income
tax,state unemployment,and
r3.16.010.1(KI Postage - Postage including stamps, trust fund, postage meter and bulk miscellaneous employee payroll
mailing permit deposits. deductions
Deleted:3.16.010.1(J) Petty cash-
3.16.010.1(LIRepayment of internal loans approved by the Boardljournal entry only; n0 reimbursement of fund.¶
¶actual check).
Deleted:
3.16.010.1(Mk Loans - Repayment of loans that have been approved by the Board of Deleted:Permit No.1,
Directors. Where practicable, the payment will,be sent by ACH or wire transfe4 to the Deleted:
lending institution on or before the payment due date. Deleted:Tahoe Donner intra-fund
loan
3.16.010.1(N) State Board of Equalization - sales tax, use tax and energy surcharges Deleted:
collected. Deleted:actually
3.16.010.1(0) Wholesale power expenses including, but not limited to, the Northern Deleted:red
California Power Agency,the District's current Board approved wholesale power supDlier Deleted`
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)J3id items-where the Board has authorized a bid purchase and the invoices fDIeted,
excluding sales tax and shipping charges isJess than or equal to the authorized contract. Deleted:is the same dollar amount
Amounts billed above the bid amount must be approved by the General Manager or the Formatted: Font color: slack
Board_
Deleted:or
3.16.010.1(Q)Monthly and annual building utility expenses for telephone,garbage,heating, Deleted:¶
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.
Title 3 Page 16
3.16.010.1(R)Rems approved by the Board: Any items that have been approved by the 9eeleted: Deleted by Resolution
Board at a scheduled board meeting(e.g.vrooertv and liability Insurance renewal).
11
3.16.010.1(S),The General Manager may approve payments required in an unpredicted Deleted:
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 Deleted:$10,000
issued authorization for an expenditure oo$15.000,or greater. Deleted:greatertnan
Deleted:$10,000
3.16.010.3 All checks issued in any of the above categories will appear in the accounts payable Deleted.
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 Deleted:Backup
Department. Deleted:¶
3.16.020pills for Board Approval-Bills which may be controversial should be listed as a special (Resolution No.sloe,9611)1
agenda item accompanied with the General Manager recommendation. Deleted:
Formatted: No underline
3.16.030Accounts Payable Deleted:¶
(Board direction,1215178)
3.16.030.1 Ppon presentation of invoices for goods and services and other financial obligations of Deleted:¶
the District in the format prescribed in Title 3, Chapter 3.08, Purchasing, to the Administrative Deleted:
Service Department,the Treasurer shall be authorized to issue payment for such invoices. In the Formatted: No underline
absence of the Treasurer,a Board authorized designegAhall be authorized to issue payment. Any
Payments approved in the absence of the Treasurer will be'reviewed by the Treasurer upon his/her Deleted:
return. Deleted:the General Manager
3.16.030.2, I,2ayments for District financial obligations shall be processed through the District's Deleted:
computerized accounts payable program.Prior to Issuing checks,the District's Accounts Payable f Deleted:P
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 Deleted:budget
activity cods have been assigned to the charges;and that the correct supporting documents are Deleted:account number
attached to the invoice. The Accounts Payable Clerk will also verify that invoices greater than
$10,000 have been approved by the General Manager and that invoices 15 00 and greater have Deleted:$s,000
a Board authorized Minute Clyderattached showing the amount of the approved expenditure or prior Deleted:greater than
Board authorization for regular District expenditures as listed in Title 3, Chapter 3.16.010, Pre- Deleted: $10,000
authorized Disbursements.
3.16.030.3,after verifying that the above items are in order,the Accounts Payable Clerk wLrun the Deleted:
checks for payment and print a check register listing the number of each check issued,the vendor Deleted:snail
paid,the amount of the charges and the amount-of the total check.. In order for the Accounts Deleted:and
Payable Clerk to print checks the Treasurer, or in his or her absence their Board authorized
designee will also have to log onto the District's computerized check pnnting and banklnq software
and key in their confidential password. Deleted: —�
3.16.030.4 Before anvpavments,ACH transfers or wire transfers are released he Treasurerwi Deleted:Tt
then verify that the accounts payable check register and the Individual Invoices,match, that the Deleted:snail
invoices have been properly processed and that the expenditures have been made in accordance Deleted:warrant register
Title 3 Page 17
with the District's purchasing procedures. The Treasurer or their Board authorized designee then Deleted:3.16.030.5 The Treasurer
authorizes the Davment ACH or wire transfer of funds using a secure program linked to the District's or General Manager shall then
bank account. process the checks through the
District's automated check signing
machine using the facsimile signature
A.16.030.6 jn the event that a manual check needs to be issued outside of the automated check run of either the Treasurer or the General
roces the check will y
require two signatures.The two signatures can be an two Board authorized Manager.The automated check
q g g signing machine shall be one that
checking account signatures., allows fora removable facsimile plate
which will be kept locked up when not
3.16.030.7 t the second regular meetin held b the Board of Directors he Board will be in use.The machine will also require
,A_ g y � two keys to activate;the two keys will
presented with the following reports be kept by two different employees.¶
,3.16.030.7(A)(1) Accounts payable check register showing all of the checks issued for the Deleted:
accounting period being presented.The register shall show the date of the check,the check Deleted:regular weekly check run
numbers issued,the vendor names and the amount of the checks_ Deleted:Individual Directors,the
General Manager and the District
3.16.030.7(A)(2) Statement of the general fund showing the beginning checking account on hserestricf be authorized u sign
balance,the categories of cash received by the District during the month,a'summary list of on the District's checking accounts.¶
the cash disbursements made during the month, any authorized transfers in or out of the Deleted:
general fund and the ending balance at the end of the month. Deleted:monthly business
Deleted::
3.16.030.7(A)(3) Investment report showing the status of the District restricted funds. Deleted:¶
Deleted:3.16.030.7(A) The Board
3.16.030.7(A)(4) Fund status report showing the location of all District funds and the amount will be presented with the following
on deposit at each financial institution or organization. reports.¶
Deleted:¶
r3.16.030.7(B),The details of all checks issued and invoices aid shall be available for review _
p Deleted:3.16.030.7(A)(5) Monthly
by any Director in the Administrative Services Department. The Board shall Officially budget report showing the status of
authorize payment of all disbursements that have been made by the Treasurer and budgeted expenditures compared to
presented on the accounts payable check register at a regular board meeting.monthly., ¶ctual expenditures.¶
3.16.030.7(A)(6) Monthly financial
3.16.030.7(C)The Treasurer shall list on the agenda any invoice for purchases that have not Statement snowing the stags of all
purchasing policies as set forth in Title 3, revenues and expenditures in the
been made in accordance with the District's p g p format of financial statements using
Chapter 3,08,Purchasing. generally accepted accounting
principles for utilities.¶ „ 2
116030 7(D) Semi-annual "udget reports showing the status of budgeted exeenditures Deleted:
compared to actual expenditures will be presented at a board workshop after the close of the ' Deleted:the monthly business
meeting.
June and December financial records.
Formatted: Font: Bold
.3.16.030.1(g) Semi,annual financial statements showing the status of all revenues and Formatted: Font:Bold
expenditures+in the format of financial statements using generally accepted accounting Formatted: Font:Bold
principles for utilities after the close of the June and December financial records.
Deleted:
3.16.030.8.1n the absence of the Treasurer,the General Manager,Assistant General Manager oc, Deleted:
Finance and Accounting Manager may act to ad minister.Section 3.16 of the Finance and Accounting Deleted:F
Dolicy as the Board Authorized Designee, Deleted:s
" Deleted:a
CHAPTER 3.20 Deleted:d
Deleted:d
INVESTMENTS t Deleted:.
Deleted:(Res.9522,9611)¶
Title 3 Page 18
i
Sections:
3.20.005 LAIF Investments
3.20.008 Wire Transfers
3.20.010 Investment of Surplus Funds
3.20.005j.oeal Aggnc Investment Fund Investments Deleted:
Formatted: No underline
3.20.005.1 rAuthorization has been given for the deposit and withdrawal of'monies in the Local Deleted:
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.
3.20.008 fund Transfers Deleted:
Formatted: Font:Arial Bold,Bold
3.20.008.1 The Board approved commercial bank (Bank) is requested to honor,"ecute and Formatted: Font:Anal Bold
process the District's telephonic,electronic written or oral requests for the transfer of funds between Deleted:wire
the accounts of the District at Bankand the Local Agency Investment Fund,subject to such terms
and conditions as may from time to time be agreed upon by the bistrict. Formatted: No underline
Deleted: The Truckee River Bank
3.20.008.2 Any one of the following liste officers or employees of the District,the President of the Deleted:telegraphic
Board, the General Manager, the Treasurer or the Board approved authorized designee in their
g Deleted:the Truckee River Bank
absence, are hereby authorized,directed and empowered for and on behalf of and in the name of
- Deleted,named
the District as follows:
Deleted:Administrative Services
3.20.008.2(A) To execute agreements with the Bank providing for such funds transfers and Manager,
to make and verify requests for such transfers,and the Bank shall be entitled to honor and Deleted:President of the Board,be
and
charge this District for all such requests,when given(or purported to be given)by any one of
the above.
3.20.008.2(B),To make,execute and deliver such other agreements as may be required by Deleted:
the Bank;and
3.20.008.2(C) To perform or cause to be performed all further acts and execute and deliver
all further instruments which Bank may deem necessary to carry out the purposes of this
policy.
3.20.008.3 The District hereby ratifies and confirms the acts of its officers,agents or employees in Deleted: �
heretofore requesting transfers of funds from this District's accounts with the Bank by wire or
comparable transfer together with any acts performed in relation hereto.
Deleted:
3.20.008.4,That the Clerk of the District is hereby authorized and directed to execute,acknowledge Deleted:r
and deliver a certified copy of the$esolution related hereto to thegank and any other person or , Deleted:b
agency which may require copies, and that the certification of the (Secretary) Clerk as to the Deleted:
signatures of the above named officers will be binding on this District. Deleted:b
3.20.008.5That the_Pank is authorized to act upon this policy until written notice of the revocation Deleted:b
thereof by a resolution duly adopted by the Board of Directors of this District is delivered to thepank, Deleted:b
such revocation in noway to affect the obligations of this District to the Pank incurred pursuant to Deleted:b
the terms of this policy prior to receipt by the Pank of such notice or revocation. Deleted:¶
(Resolution 9016,9526,9611)¶
Title 3 Page 19
3.20.010 Jnvestment of Surplus Funds Deleted:
Formatted: No underline
The District Treasurer shall invest surplus funds, both restricted and general, pursuant to the Deleted:¶
District's Investment Policy(District Code 3.20.12)_A regular accounting of all fund activities shall 3.20.010.1 Deleted by Resolution
be presented to the Board of Directors in the monthly Treasurer's Report. 9611.¶
..20.010.2 Deleted by Resolution
9611.¶
r3.20.012 jnvestment Policy Deleted:3.20.010.3
3.2Q.012.1,jnvestmentAuthorit In accordance with Section 53600 et seq.of the Government `? Deleted:Manager and
Code of the State of California,the authority to invest public funds is expressly delegated to the Deleted:in either the Local Agency
Board of Directors for subsequent delegation to the Treasurer. The Treasurer of the District Investment Fund,certificates of
deposit,or other major banking
receives direction and authority to invest any and all District funds from the Board of Directors of the ; investments which are allowable by
District. law and approved by the Board of
�,'"�" Directors and yield the maximum
return to the District.
3.1(,012.2�Statement of Obiectives._Per section 53600.5 of the California Government Code the Deleted:(Resolution 7911.9611)¶¶�
primary objective of the Treasurer shall be to safeguard the"principal of the funds under his/her ` ¶
control when investing public funds. The secondary objective shall be to meet all liquidity Deleted:
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: Formatted: No underline
IDeleted,
1. Safety-Safety of principal is the foremost objective of the investment program. Investments : Font:Bold,No
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 riskand interest rate risk, VESTMENT
: Font:Bold,No
a. CreditRisk: The District will minimize credit risk,the risk of loss due to the failure of the security issuer or backer,by: THORITr
i. Limiting investments to the safest types of securities. For
Font: Bold,No
underline
ii. Pre-qualifying the financial institutions,broker/dealers,intermediaries and advisers Deleted:2
with which the District will do business(custodial risk). Formatted: Font: Bold,No
underline
iii. Diversifying the investment portfolio so that potential losses on individual securities-,% Deleted:TATEMENT OF
will be minimized(concentration of risk). oe&CTIVEs
01 Formatted: Indent: Lek: 0.25"
b. Interest Rate Risk: The District will minimize the risk that the market value of Formatted: Indent: Left: os^
securities in the portfolio will fall due to changes in general interest rates,b :
p 9 9 Y Deleted:¶
i. Structuring the investment portfolio so that securities mature to meet cash Formatted: Indent. Left: 0",First
line: 0 5",Widow/Orphan control
requirements for ongoing operations,thereby avoiding the need to sell securities Formatted: Indent: First line: 0°
on the open market prior to maturity.
Deleted:
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.
Title 3 Page 20
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., Deleted:section V of this Policy.
3.21(,012.3,prudent Investor Standard As applicable to the District,the prudentinvestor standard &4il
i 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, nt: Bold,Noincluding but not limited to, the general economic conditions and the anticipated needs of the District,that a prudent person acting in like capacity and familiarity with those`matters would use in NT INVESTORthe conduct of funds of a like character and with like aims,to safeguard the principal and meet the
liquidity needs of the District.
3.2q,012.4,Portfolio Any reference to the portfolio shall mean the total of the District's cash and Deleted:2
securities under management by the Treasurer. Deleted:oRrFouo
Formatted: Font: Bold,No
Except for cash in certain Board designated,restricted and special funds,the District underline
will consolidate cash and reserve balances from all funds to maximize investment
earnings and to increase efficiencies with regard to investment pricing,safekeeping,
and administration. Investment income will 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 the debt Deleted:that of
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.
Title 3 Page 21
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.
3.2Q,012.5Puthorized Investments, Deleted:2 —�
Formatted: Font: Bold,No
1. The District's authorized commercial bank in an interest bearing checking or savings underline
account. The Treasurer is authorized to make daily deposits and withdrawals for purposes Deleted:uTHORIZED
of the safekeeping of District monies and payments of"District financial obligations. INVESTMENTS
Deleted:ing institution
2. Local Agency Investment Fund(LAIF)—Deposits forthe 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 Deleted:
the investments within these sections other than subsections 1 and 2 above. From time to Deleted:numbers
time, the Board may also consult with an investment professional pursuant to Title
3.20 012.2 Section 1'a i4 Each investment will be specifically authorized by the Board of Deleted: above
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 theEiinancial Advisor or Trustee on the financing for Deleted:
investment recommendations to submitto the Board of Directors for approval. The Deleted:f
Treasurer is authorized to invest funds in a money market fund or LAIF with the Trustee Deleted:a
pending investment of those funds in a longer-term investment,which will be approved by Deleted:bring
the Board of Directors.
Deleted:2
3.20,012.6,teportina In accordance with Section 53646 of the California Government Code,the Formatted: Font:Bold,No
Treasurer shall submit a quarterly report to the Board of Directors within 30 days following the end of underline
Deleted:EPORTING
Title 3 Page 22
the quarter covered by the report. The report shall include investment activity,including yield and
earnings,and the status of cash by depository.
3.2Q.012.7 Internal Controls Annually, the Truckee Donner Public Utility District will have an Deleted:2
independent audit by an external auditor. This audit will provide internal control by assuring Deleted:NTERNAL CONTROLS
compliance with policies and procedures. Formatted: Font: Bold,No
underline
3.24,012.8�arties Authorized to Act in the Event of the Absence of the Treasurer.-In the event Deleted:2
of the absence of the Treasurer, the following positions are authorized to make necessary and Formatted: Font: Bold,No
authorized investments pursuant to District Code 3.20.0120 underline
Deleted:ARTIES AUTHORIZED TO
General Manager ACT IN THE EVENT OF THE
Assistant General Manager ABSENCE OF THE TREASURER
Finance and Accounting Manager Deleted:Section V of this policy:
3.20,012.914nnual Review of Investment PoliclL The Investment Policy shall be submitted at least- Formatted: Widow/Orphan control
annually to the Board of Directors for adoption. The policy be reviewed annually to ensure its `. Deleted:2
consistency with the overall objectives of preservation of principal,,liquidity,yield and its relevance to Formatted: Font:Bold,No
current law and financial and economic trends. The review will also include the review of the underline
diversification of the investments in the portfolio and the Custodial risk of the portfolio. Any Deleted:NNUAL REVIEW of
modifications made thereto must be approved by the Board of Directors. INVESTMENT POLICY
Deleted:¶
CHAPTER 3.24 Deleted:Res.2006-33,2007-34
=eleted:T
RESTRICTED FUNDS
Sections:
3.24.010 Restricted Funds
3.24.010.1 The Board of Directors will direct staff when monies collected by the District are to be
considered as restricted funds.
3;,?4 010 1 (A) Board Designated Restricted Funds are those funds restricted by Board• Formatted: Indent: Left: 0.5°
action and which the Board can change the purpose of the designation at any time.
3 24 01 Q1 (B)Restricted Funds are those funds that are restricted by contract or agreement• Formatted: Indent: Left: 0.5"
with the District such as a loan reserve fund.
3.24.010.2 Restricted'funds will be invested pursuant to the Districts investment policy as described
in Chapter 3.20, Investments.
3.24.010.3 All interest earned upon said restricted funds shall adopt a characterof and become part
of the specific restricted account unless otherwise directed by the Board of Directors.In the case of
loan reserve funds whosebalances are greater than the reserve requirement the surplus funds may Deleted:'s
be used to offset the principal and interest payments on the loan.
3.24.010.4 Expenditures from restricted funds shall be authorized by the Board of Directors.From
time to time,the Board may pre-approve transfers from restricted funds in advance that pertain to
specific projects or activities.
Title 3 Page 23
Deleted:(Resolution 8817,9611)¶
3.24.010.5 The District's Treasurer will include a monthly report on the activity of the restricted funds ¶
accounts along with the monthly Treasurer's Report. Deleted:4
' 4
CHAPTER 3.28¶
CHAPTER 3.32 CONTRACTS MANAGEMENT¶
STANDBY CHARGES AND ASSESSMENT DISTRICTS Sections:¶
3.28.010.Change Orders¶
3.28.020.Contractor Insurance
Sections: Requirements¶
3.32.010 Collection of Delinquent Assessments Deleted:3.28.010 Chance Orders-
3.32.020 Standby Charges The Truckee Donner Public utility
District cannot afford to maintain a
3.32.010.Collections of Delinquent Assessments-The followin 'procedure is to be used b the large enough construction crew to be
g y able to undertake all projects in-
District staff and by District Counsel in connection with the collection of delinquent assessments. house. Therefore,it relies heavily on
contractors to perform work. These
contractors perform work in
Assessments are due on November first and February first of each year, and are delinquent on accordance with plans and
December tenth and April tenth,respectively. specifications and based on a fixed
price contract.¶ 3
Following is the procedure the District has adopted for collecting delinquent assessment Dayments: Deleted:(Resolution 9031,96 , dal
Deleted:
I3.32.010.1 By January thi -firs and May firth-firs of each year or as soon as the county records. Formatted: No underline
are available,the District Treasurer will contact the County Tax collector's Office and determine Deleted:county records are 5
whether any assessments are delinquent and, if so, the amount of any such delinquency. The
District Treasurerwill then immediately send,by certified mail,a friendly collection letter,requesting Deleted:tenth
payment within fifteen days,with copies to District Counsel and to the General Manager. Deleted:tenth
Deleted:ten
3.32.010.2 Jf not paid within fiftee days of the friendly letter, the District Treasurer will send, by\ Formatted: Font color: Black
certified mail, a demand letter. This letter will demand payment within tear days, and will indicate \ Deleted:
that,if not paid,the matter will be referred to District Counsel for initiation of foreclosure proceedings
I against the delinquent parcel. Copies of this letter will be sent to District Counsel and to the General Deleted:ten
Manager. Formatted: Font color: Black
Deleted:rive
3.32.010.3 Jf not paid withinIM days of the demand letter, District Counsel will send a letter, by Formatted: Font color: Red
certified mail demanding immediate payment and indicating that the delinquency will be referred to "' Formatted: Font color: Black
Nevada and/or Placer Countie�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. Deleted:
Deleted:rive
3.32.010.4 Jf not paid within�ten days of District Counsel's demand letter,District Counsel will refer Formatted: Font color: Black
the matter to Nevada and/or Placer Counti�Counsel, and request that foreclosure be_initiated Deleted:y
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 Formatted: Font color: Black
delinquent parcel so that the owner will be aware that foreclosure is about to be initiated. Deleted:
Formatted: Font color: Black
3.32.010.5r4pproximately every thirty days thereafter, District Counsel will contact Nevada and/or fDeleted:y
Placer Countie _Counsel to ascertain that-the foreclosure proceedings_are going forward on a Deleted:
proper schedule. Deleted:y
.3.32.010.6 The Board may authorize a third Darts companywho sDecializes in Derforming services Deleted:¶ ,,_6
listed in section 3.32.010 to work with the Board District staff and District Counsel to bill and collect FRrmatted: Font: Bold
Title 3 Page 24
assessment monies due.
3.32.010.7 All delinquent assessment payments will be required to include any late fees,legal fees
and/or administrative charges allowed to be collected under California State law.
3.32.020.1 Standby Charges -Annually, the Board of Directors will authorize by resolution the Formatted: No underline
continuance of and the amount of charges for electric and water standby 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.
FI
leted:(Resolution 9611)¶
Title 3 Page 25
Page 7:[1]Deleted Mary Chapman 5/15/2008 8:16:00 PM
Sections:
3.06.010 Contracts Regarding the Purchase of Wholesale Power
3.06.010 The District has entered into a contract with Constellation Power Source, Inc.that includes
a monthly shaped block purchase designed to meet the Districts average projected load for each
month and for a put/call portion. The monthly shaped block purchase is at a fixed price, while the
put/call option is based on an index.The purchase of power and energy on an index places a price
risk on the District which can be managed by purchasing financial instruments and or physical
instruments.
3.06.010.1 The Power Supply Engineer of the District, in consultation with staff of Northern
California Power Agency and with the approval of the District General Manager, is authorized to
execute financial and or physical contracts which manage the price risk of the power and energy
purchased from the market subject to the following terms and conditions.
3.06.010.1(A) A minimum of two telephone quotes shall be secured from the market. .Such quotes
shall be recorded on the transaction memorandum which shall be prepared to document the actions
leading up to purchase of the contract.
3.06.010.1(B) The Power Supply Engineer shall consult with the appropriate staff of the Northern
California Power Agency regarding the desirability to seek quotes and shall again so consult after
receipt of the two quotes. These consultations shall be documented in the transaction
memorandum.
----Section Break(Next Page) ;-t-
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)
Page 18:12]Deleted Mary Chapman 3/18/2008 8:43:00 PM
3.16.030.7(A)(5) Monthly budget report showing the status of budgeted expenditures
compared to actual expenditures.
3.16.030.7(A)(6) Monthly financial statement showing the status of all revenues and
expenditures in the format of financial statements using generally accepted accounting
principles for utilities.
Page 24:[3]Deleted Mary Chapman 4/11/2008 1:52:00 PM
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.
Most contract change orders are such that their consideration by the Board can wait for a regular
Board meeting. However, under certain circumstances it is to the District's benefit to permit the
General Manager and project engineer to authorize work to proceed on a change order.
Work can commence on a contract change order prior to being reviewed by the Board of Directors
under the following circumstances:
3.28.010.1 When a delay in making the decision to change the contract would impose an
unreasonable financial burden on the District.
3.28.010.2 When the need for the change is so compelling that to proceed with the project as
originally planned is impossible or would be financially burdensome on the District.
3.28.010.3 When the amount of the change in contract price is less than $10,000.
3.28.010.4 The exercise of this prerogative should be done with discretion and in the following
manner:
3.28.010.4(A) A memorandum should be prepared setting forth the precise circumstances justifying
the change in plans and specifications or scope of work and should specify the change in contract
price.
3.28.010.4(B) The memorandum should be signed by the project engineer and General Manager
and forwarded within 24 hours to each Director.
3.28.010.4(C) A contract change order should be prepared for consideration by the Board of
Directors at their next regular meeting or at a special meeting if one is called.
Section Break(Next Page) - - -- - - --
(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 liabilitywhich
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.
Page 24:[41 Deleted Mary 5/11I2008 6:05:00 PM
(Resolution 9031, 9611)
Page 24:[5]Deleted Mary Chapman 5/15/2008 2:11:00 PM
County records are generally not up to date,and therefore the County cannot determine that
December tenth assessments are delinquent until approximately thirty days later, or
approximately January tenth of the following year. Similarly, the County cannot determine
that April tenth assessments are delinquent until approximately May tenth.
Page 24:[6]Deleted Mary Chapman 5/15/2008 9:12:00 PM
(Resolution 8444, 9611)