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HomeMy WebLinkAbout2000-05-17 Agenda Packet - Board (11) r-,;e�' TRUCKEE DONNER Public Utility District Monthly Activity Report To: Board of directors From: Peter Holzmeister Date: May 12,2000 Governance:The Truckee governance issues have taken some of my time during the past month. I have met with managers of other districts to develop a strategy to get our message into the Community. This will be fully discussed during our workshop on May 17. LAFCo: I have worked with Bob Braitrman and Alan Harry to get the final information to LAFCo regarding activation of our latent communications power. SR Jones tells me this matter will come before the Commission in June,and LAFCo will most likely conduct that meeting in Truckee. Union negotiations: 1 have continued to meet with IBEW Local 1245 regarding the MOU for our employees. We are now waiting for three financial analyses to be completed by NRECA regarding medical insurance options. Negotiations have become protracted because of the compledty of the issues on the table. I am taking my time to perform detailed analyses before putting counter-offers on the table. This is Causing some concern among union members,but we need to proceed carefully. Management Staff meetings: 1 continue to conduct management group meetings each Monday morning.We use this time to make sure we are all going in the same direction. We share information about projects we are working on,and set up methods to help each other. All employee meetings: I Conducted an all-employee meeting during the month. There is much interest in telecommunications and the town's plan to vacate our building. There is concern over changes in our medical insurance program, especially regarding prescription drug coverage. Draft audit report:Attached is a draft audit report prepared by Arthur Anderson.We should discuss holding an audit workshop and acceptance of the final audit.As you will see from the draft audit,we had a very good year in 1999. 0 Page 1 AR-4 HUT-;,ANr)ERSEN Mr. Peter Holzmeister Arthur Andersen LLP Truckee Donner Public Utility District suite aw ore cap:roi rnau 11570 Donner Pass Road Sacramento CA 95814-3229 Truckee, California 95734 Tel 916 442 0501 Fax 916 442 0170 April 28,2000 Dear Peter: Enclosed is a draft copy of the Truckee Donner Public Utility District financial statements as of December 31, 1999 and 1998 for review-by the Board of Directors. If you have any questions or comments,please do not hesitate to call me at(916) 557-2033. Very truly yours, jD �Vkorothe D. Silva Enclosures DRAF� TRUCKEE DONNER PUBLIC UTILITY DISTRICT BALANCE SHEETS AS OF DECEMBER 31, 1999 AND 1998 1999 1998 ASSETS PLANT SERVING CONSUMERS (Note 2) S 28,489,459 $ 27,358,043 RESTRICTED FUNDS (Note 3) 6,761,273 6,713,154 CURRENT ASSETS: General fund (Note 3) 670,346 1,236,010 Amounts due from consumers (including amounts not yet billed of $771,283 and 5835,302), less reserves for uncollectible amounts of$17,035 and $14,221 2,270,332 1,858,578 Materials and supplies 567,746 421,091 Prepaid expenses and other current assets 227,385 138,619 Total current assets 3,735,809 3,654,298 UNAMORTIZED FINANCING COSTS 1,007,981 1,098,815 S 39,994,522 $ 38,824,310 CONSUMERS' FUNDS AND OBLIGATIONS CONSUMERS' FUNDS REINVESTED IN THE DISTRICT $ 18,069,243 $ 16,923,844 BORROWED FUNDS, less portion due next year(Note 4) 17,564,465 18,255,187 CURRENT OBLIGATIONS: Amounts due for power purchases 443,690 494,667 Amounts due for other purchases 947,760 336,025 Deposits collected to ensure payment for services 222,743 221,959 Interest due to creditors 164,284 168,479 Standby fees billed and due next year 123,873 124,755 Amounts due to employees for payroll 307,964 262,226 Borrowed funds due next year(Note 4) 698,176 665,020 Total current obligations 2,908,490 2,273,131 FUNDS RECEIVED FOR CONSTRUCTION OF FACILITIES 1,452,324 1,372,148 $ 39,994,522 $ 38,824,310 The accompanying notes are an integral part of these staters"Tentative & Preliminary" For i3iscussion Purposes Only DRAFT TRUCKEE DONNER PUBLIC UTILITY DISTRICT STATEMENTS OF OPERATIONS FOR THE YEARS ENDED DECEMBER 31, 1999 AND 1998 1999 1998 REVENUES: Sales to consumers $12,505,970 $12,236,917 Consumer electric refund (933,212) (913,178) Standby fees 239,985 256,240 Income from investments 448,058 499,009 Other 358,386 342,546 12,619,187 12,421,534 EXPENSES: Power purchases (Note 1) 4,385,928 4,895,065 Operations and maintenance 2,334,320 2,183,722 Administrative and general 1,738,911 1,805,839 Consumer services 444,437 430,390 Interest 998,010 1,047,154 Use and deterioration of plant 1,572,182 1,443,505 11,473,788 11,810,675 REVENUES IN EXCESS OF EXPENSES 1,145,399 610,859 CONSUMERS' FUNDS: Consumers'funds, December 31, 1998 16,923,844 16,312,985 Consumers'funds, December 31, 1999 $18,069,243 $16,923,844 "Tentative & Preliminary" The accompanying notes are an integral part of these sta eomrenu%scussion Purposes Only DRAFT TRUCKEE DONNER PUBLIC UTILITY DISTRICT NOTES TO FINANCIAL STATEMENTS 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Organization The Truckee Donner Public Utility District (the District)was formed and operates under the State of California Public Utility District Act. The District provides electric and water service to portions of Nevada and Placer counties described as Truckee and Donner Lake. The electric and water service operations are maintained and operated separately. These financial statements reflect the combined electric and water operations of the District. All significant transactions between electric and water operations have been eliminated. These eliminations include power purchases, rent for shared facilities and interest costs. The District follows accounting policies and practices that are generally accepted for utilities. The District generally keeps its books and records in accordance with the rules of the Federal Energy Regulatory Commission and the National Association of Regulatory Utility Commissioners. Use of Estimates in the Preparation of Financial Statements The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Plant Serving Consumers Plant is recorded at the amounts paid when purchased. New plant is recorded as an asset. Maintenance and repair costs are expenses of operations. Consumer contributions are applied to reduce the cost. Depreciation (use and deterioration of plant) is calculated using the straight-line method over the estimated useful lives of the assets. Average rates are used for asset groups. Gain or loss is recorded on the sale or disposal of an asset. Materials and Supplies Materials and supplies are recorded at the amounts paid when purchased. Unamortized Financing Costs The costs relating to borrowing funds are amortized over the lives of the related borrowings using the effective interest method. "Tentative & Preliminary" For Discussion Purposes Only DRAFT TRUCKEE DONNER PUBLIC UTILITY DISTRICT STATEMENTS OF CASH FLOWS FOR THE YEARS ENDED DECEMBER 31, 1999 AND 1998 1999 1998 OPERATING ACTIVITIES: Revenues in excess of expenses $ 1,145,397 S 610,859 Adjustments for operating items that did not use cash- Use and deterioration of plant 1,572,182 1,448,505 Changes in operating assets and liabilities- Amounts due from consumers, materials and supplies, prepaid expenses and other assets (472,820) (42,409) Amounts due for power purchased, other purchases, deposits and standby fees 560,660 68,470 Amounts due to employees for payroll 45,738 (1,461,586) Net cash provided by operating activities 2,851,157 623,839 PLANT AND RELATED BORROWING ACTIVITIES: Acquisition and construction of plant, net (2,703,596) (2,323,791) Principal payments on borrowed funds (657,566) (674,255) Cash from borrowing new funds 0 603,174 Change in funds received for construction of facilities 80,176 196,413 Net cash used by plant and related borrowing activities (3,280,986) (2,198,459) Net decrease in cash and cash equivalents (429,829) (1,574,620) CASH AND CASH EQUIVALENTS, beginning of year 7,861,448 9,436,068 CASH AND CASH EQUIVALENTS, end of year $ 7,431,619 $ 7,861,448 Cash paid for interest $ 1,002,205 $ 1,089,706 The accompanying notes are an integral part of these statLemenentative & Preliminary" or tlscussion Purposes Only DRAFT Funds Received for Construction of Facilities The District receives fees for assistance with construction. The District records these fees as liabilities until they are used for construction costs or refunded if required by law. Revenues Revenues are recorded as meters are read on a cycle basis throughout each month for electric and commercial water. Income that the District has earned through investing its cash not needed currently is reflected as revenue when the District has earned it. The District has authorized an 11 percent credit on all customer electric bills. See power purchases below. Power Purchases The District purchases all of its power from third party sources. In 1999 Idaho Power supplied almost 100 percent of power purchased. In 1998 Sierra Pacific Power Company(SPPC)supplied 23 percent and Idaho Power supplied 77 percent. Purchased power contracts are filed with the Federal Energy Regulatory Commission (FERC). The District also purchases transmission services from SPPC and scheduling and dispatch from Northern California Power Agency. These purchases represent 14 percent and 12 percent of total purchased power costs in 1999 and 1998, respectively. The contract to purchase power from Idaho Power was entered into in July 1997. This contract resulted in purchased power savings to the District. In January 1999, the Board of Directors approved the first amendment to the July 1997 contract with Idaho Power. The amendment provides a fixed rate for all power purchases through December 2001. As a result of the purchased power savings, the Board of Directors authorized and implemented an 11 percent credit on all customer electric bills, which started in January 1998. This credit will continue through the 2000 billing cycles. Income Taxes The District is exempt from payment of federal and state income taxes. Investments During 1998, the District implemented Government Accounting Standards Board No. 31 (GASB No. 31), "Accounting and Financial Reporting for Certain Investments and for External Investment Pools". This standard establishes fair value standards for investments. The effects of GASB No. 31 are immaterial to the financial statements. As a result, the investments are stated at cost which approximates fair market value. 2 "Tentative & Preliminary" For Discussion Purposes Only DRAFE 2. PLANT SERVING CONSUMERS: Plant consisted of the following at December 31, 1999 and 1998: 1999 1998 Electric distribution facilities $ 11,372,497 S 10,691,454 Water distribution facilities 19,224,264 19,116,651 General plant 7,687,178 7,399,224 38,283,939 37,207,329 Less: accumulated depreciation (12,011,593) (10,438,414) 26,272,346 26,768,915 Construction work in progress 2,217,113 589,128 $ 28,489,459 $ 27,358,043 A portion of the plant has been contributed to the District. When replacement is needed, the District replaces the contributed plant with District-financed plant. Future rate increases may be necessary to pay for these replacements. Generally accepted accounting principles applicable to utilities do not allow contributed plant assets to be depreciated by the District. 3. GENERAL AND RESTRICTED FUNDS: The District maintains funds pursuant to rules of the Board and commitments made when borrowing funds. GASB No. 31 requires cash and investments to be recorded at fair market value. The District adopted GASS No. 31 during the year, but the effects on the financial statements are immaterial. As a result, general and restricted funds are stated at cost which approximates fair market value. A description of general and restricted funds follows. General Funds General funds are derived from the operations of the District and are unrestricted. The 1991 Certificates of Participation require the general water fund to be classified as a restricted fund. Facilities Fees The District charges facilities fees to applicants for new service to cover the costs of infrastructure needed to meet their systems demand. These fees are held as restricted funds as required by the Board rules. Certificates of Participation: Electric Rules relating to the Electric Division's Certificates of Participation require a reserve fund as security for each principal and interest payment as they are due. A reserve fund is set aside for the highest annual principal and interest payment over the life of the borrowed amount. All of these reserve funds are held by BNY Western Trust Company(see Note 4). 3 "tentative & Preliminary" For Discussion Purposes Only IDRAFT Building Fund In compliance with the Board rules, the District maintains a building fund to help pay for the interest and principal of the borrowed funds used for the District office complex. Storm Damage Fund The District maintains a restricted fund to provide for storm damages that may occur in the future. Electric Rate Reserve In compliance with Board rules, the District has created an electric rate stabilization fund in anticipation of future costs. The Board can make transfers from this fund to the general electric fund when demands on the general electric fund exceed the fund balance in lieu of increasing electric rates. Certificates of Participation: Water Rules (a trust agreement)relating to the Water Division's Certificates of Participation require several restricted funds. They are to provide for payment of principal and interest if no other monies of the District are available. A reserve fund is set aside for principal and interest payments as they become due. All revenues received by the District's water operations and not used for normal operations must be restricted. The Water Division's Certificates of Participation debt funds are held by US Trust, with the exception of the general revenue fund, which is held by the District(see Note 4). DWR Prop 55 Reserve Fund Rules relating to the California Safe Drinking Water Bond Law of 1986 construction loan require the accumulation of a reserve fund as security for each principal and interest payment as they are due. Annual payments into the fund are required for each of the first ten years beginning April 1, 1996. The total reserve fund will equal two semi-annual payments. These funds will be set aside for the life of the borrowed amount. All of the reserve funds are held by the State of California Local Agency Investment Fund_ Reserve for Future Meters Prior to 1992, connection fees charged to applicants for water service included an amount which was applied to a restricted fund to offset the cost of future metering. As meters are installed, restricted funds are transferred to the general fund to repay the general fund for meter costs. Tahoe Donner Water System Fund In compliance with the Board rules, the District maintains a restricted fund for Tahoe Donner Water System improvements. 4 "Tentative & Preliminary" For Discussion Purposes Only DRAFT Prepaid Connection Fees In compliance with Board rules, the District has set aside funds received as prepaid connection fees. The funds will be used to cover the cost of the installation of water meters. Other(Area Improvement Funds) The District receives funds from the County of Nevada which are to be used only for improvements to specific areas within the District's boundaries in Nevada County. These areas include various Nevada County assessment districts. At December 31, 1999 and 1998, the balances of the general and restricted funds are as follows: 1999 1998 General electric fund $ 670,346 $ 1,236,010 Restricted funds: Electric- Facilities fees 536,039 411,599 Certificates of Participation 294,604 294,604 Building fund 667,494 564,398 Storm damage fund 269,208 258,984 Electric rate reserve 596,584 573,940 Restricted funds—electric 2,363,929 2,103,525 Water- General revenue fund 0 453,599 Facilities fees 1,513,135 1,659,552 Certificates of Participation 962,521 977,744 DWR-Prop 55 reserve fund 123,526 92,593 Building fund 522,649 63,430 Reserve for future meters 966,462 628,452 Tahoe Donner water system fund 104,659 533,268 Prepaid connection fees 71,761 73,366 Other(area improvement funds) 132,631 127,625 Restricted funds—water 4,397,344 4,609,629 Total restricted funds 6,761,273 6,713,154 $ 7,431,619 $ 7,949,164 5 "Tentative & Preliminary" For Discussion Purposes Only DIZAF� The general and restricted funds at December 31, 1999 and 1998 have been placed primarily into investments as follows: 1999 1998 Cash and cash equivalents: Cash $ 161,059 $ 54,421 State of California Local Agency Investment Fund, at cost which approximates market value 6,013,435 6,534,678 BNY Western Trust Company Investment Fund, at cost which approximates market value 294,604 294,605 US Trust Company Investment Fund, at cost which approximates market value 962,521 977,744 $ 7,431,619 $ 7,861,448 4. BORROWED FUNDS: Long-term debt consisted of the following at December 31, 1999 and 1998: 1999 1998 Certificates of Participation, interest rates of 2.75% to 5.375%, annual principal payments of$125,000 beginning in 1994 increasing each year to $250,000 when finally due in 2012. $ 2,475,000 $ 2,615,000 Certificates of Participation, interest rates of 5.25% to 5.4%, annual principal payments of$230,000 beginning in 1998 increasing each year to$745,000 when finally due in 2021. 10,220,000 10,455,000 Department of Water Resources, interest rate of 3.18%, semiannual interest payments due through 2020, and semiannual principal payments of $150,000 beginning in 1997 and continuing through 2020. 4,747,818 4,899,519 Installment loans, interest rates ranging from 5.4% to 5.82%, various payment terms and due dates, secured by equipment. 889,316 1,027,071 18,332,134 18,996,590 Less: borrowed funds due next year (698,176) (665,020) Less: unamortized cost of borrowed funds (69,493) (76,383) $17,564,465 $18,255,187 6 "Tentative & Preliminary" For Discussion Purposes Only JDRAFT During 1996, Truckee Donner Public Utility District Financing Corporation issued $10,905,000 of Certificates of Participation to refund Certificates issued in 1991. The 1991 Certificates were to finance the repair and construction of various water system improvements for the Truckee Donner Public Utility District. The terms of the new Certificates call for payments to be made only from the net revenues of the Water Division. These revenues are required to be at least equal to 110 percent of the debt service for each year. The outstanding balance on these Certificates was $10,220,000 and $10,455,000 at December 31, 1999 and 1998, respectively. During 1993, Truckee Donner Public Utility District Financing Corporation issued $3,245,000 of Certificates of Participation to refinance the construction loan of a new office and warehouse facility for the District. The District signed agreements with the financing corporation so that ownership of the property is held by the financing corporation as collateral. The District is required to make payments equal to the debt service on the Certificates. Upon final payment of the Certificates, ownership of the property will revert to the District. The terms of the new Certificates call for lease payments to be made only from the net revenues of the Electric Division. These revenues are required to be at least equal to 110 percent of the debt service for each year. The outstanding balance on these Certificates was $2,475,000 and $2,615,000 at December 31, 1999 and 1998, respectively. Scheduled principal payments on borrowed funds are: 2000 $ 698,176 2001 736,983 2002 715,143 2003 665,859 Thereafter 15,515,973 $18,332,134 5. EMPLOYEE BENEFIT PLANS: Pension Plan The District contributes to its own pension plan for almost all District employees who have at least one year of service. The District's payroll for employees covered by the plan for the years ended December 31, 1999 and 1998, was $1,513,547 and $1,779,227, respectively, representing 70 percent of total District payroll in each year. The plan provides specific benefits to employees at retirement. Benefits vest to participants at the rate of 10 percent per year of service for the first four years and 20 percent for years five through seven. Employees who retire at or after age 65 with ten years of credited service are entitled to receive monthly benefits equal to a set percentage of the individual's average monthly compensation. Employees who retire with 20 years of service will receive 40 percent of their average monthly compensation. Benefits are reduced pro rate for less than 20 years of credited service, and increased by 0.5 percent of average monthly compensation for each year of service in excess of 20 years. The plan also provides for death, disability and early retirement benefits which are more fully described in the plan document. 7 "Tentative & Preliminary" For Discussion Purposes Only DRAF � During the years ended December 31, 1999 and 1998, 5180,680 and $61,218, respectively, was paid to former participants_ There were no participants receiving benefits as of December 31, 1999. The plan requires the District to make proper contributions so that enough funds are available to pay benefits to employees when due. The actuarial valuations for the plan indicated that contributions of$25,176 and $103,263 were necessary for 1999 and 1998, respectively, to increase the plan's accumulated assets to an amount sufficient to provide for the normal cost of the plan. The latest actuarial report, dated December 31, 1999, indicates the following information related to the plan at December 31, 1999 and 1998: 1999 1998 Actuarial present value of accumulated plan benefits: Vested benefit obligation $ 1,222,022 $ 1,129,715 Nonvested accrued benefit obligation 28,344 33,762 Effects of projected future compensation levels 417,996 379,087 Total projected benefit obligation S 1,668,362 $ 1,542,564 Net assets available for plan benefits $ 1,887,629 $ 1,813,936 The actuarial valuation presented above is used as a substitute for the standardized measure of the pension benefit obligation under Statement No. 5 of the Governmental Accounting Standards Board. Actuarially determined funding requirements are determined using the individual aggregate method, which assumes a 7 percent weighted average rate of return on plan assets. IRS regulations require a funding calculation using the entry age normal method,which also indicated no funding requirement. Deferred Compensation Plan The District maintains a deferred compensation plan (the Plan)for its employees. The amount deferred and held in trust aggregated $2,524,546 and $1,941,592 at December 31, 1999 and 1998, respectively. Prior to 1997, all amounts of compensation deferred under the Plan, all property and rights purchased with those amounts, and all income attributable to those amounts, property or rights were (until paid or made available to the employee or other beneficiary)solely the property and rights of the District(without being restricted to the provisions of benefits under the Plan), subject only to the claims of the District's general creditors. During 1997, due to changes in the laws governing deferred compensation plans, the District placed the Plan's assets and income into a trust for the exclusive benefit of the participants and their beneficiaries. The District has no liability for losses under the Plan but does have the duty of due care that would be required of an ordinary prudent investor. In accordance with Statement No. 32 of the Governmental Accounting Standards Board, the District removed the Plan's assets and corresponding liability from the balance sheet as of December 31, 1998, which was $1,941.592. 8 "Tentative & Preliminary" For Discussion Purposes Only JDRAF� 6. CONTINGENCIES: The District is one of a group of approximately 50 utilities involved in a matter relating to the disposal of small amounts of PCB wastes at two sites. The clean up of the two sites is under the federal EPA Superfund Program. Based upon information currently available, it is likely that the District will have to contribute to the cost of the clean up of these sites. The actual amount of the District's potential liability can not be determined until accurate estimates of clean up costs are received. It is possible that the District's share of such costs could exceed S25,000. Management believes that the ultimate resolution of this matter will not have a material effect upon the financial position of the District. 9 "Tentative & Preliminary's For Discussion Purposes Only EXHIBIT TRUCKEE DONNER PUBLIC UTILITY DISTRICT DIVISIONAL COMBINING BALANCE SHEETS li AS OF DECEMBER 31,1999 AND 1998 ', /999 Electric Operations Water Operations Eliminations Total 1998 Total ASSETS PLANT SERVING CONSUMERS $ 13,448.263 $ 15,041,196 $ 0 $ 28.489459 $ 27,358043 RESTRICTED FUNDS 2,363,929 4397,344 0 6,761,273 6,713,154 CURRENT ASSE"I"S: General fund 670,346 0 0 670,346 1,236,010 '.. Amounts due from consumers 1,781.222 489,110 0 2,270,332 1,858,578 '.. Materials and supplies 443,354 124,392 0 567,746 421,091 '.. Prepaid expenses and other current assets 148.574 78,811 0 227.385 138.619 Due from other division 576,632 0 (576.632) 0 0 Total current assets 3,620,128 692.313 (516,632) 3,735,809 3,654,298 UNAMORNZED FINANCING COSTS 230.432 777,549 0 1007,981 1,09881.5 $ 19 662,752 $ 20,908.402 $ 1576.632) $ 39,994,522 $ 38,824.310 CONSUMERS'FUNDS AND OBLIGATIONS CONSUMERS'FUNDS REINVESTED IN THE DISTRICT $ 13,806,289 $ 4,262,954 $ 0 $ 18,069,243 $ 16.923,844 BORROWED FUNDS,less portion due next year 3,039.928 15,101.169 (576,632) 17,564,465 18,255,187 CURRENT OBLIGATIONS. Amounts due for power purchases 443,690 0 0 443.690 494,667 Amounts due for other purchases 800.803 146,897 0 947,760 336,025 Deposits collected to ensure payment for services 198.168 24,575 0 222743 221,959 Interest due to creditors 58.146 106.138 0 164,284 168,479 Standby fees billed and due next year 18.826 105,047 0 123,873 124 755 Amounts due to employees for payroll 260.745 27,219 0 307,964 262,226 Borrowed funds due next year 271.373 426,803 0 698,176 665.020 Total current obligations 2.071,811 836,679 0 2,908490 2,273,131 FUNDS RECEIVED FOR CONSTRUCTION OF FACILITIES 744.724 707.600 0 1452.324 1,372,148 $ 19,662,752 $ 20908 402 $ (576,632) $ 39,994,622 $ 38,824.310 TENTATIVE & PRELIMINAF"I FOR DISCUSSION PURPOSES 01ML LD 3\ A F T EXHIBIT II TRUCKEE DONNER PUBLIC UTILITY DISTRICT DIVISIONAL COMBINING STATEMENTS OF OPERATIONS FOR THE YEARS ENDED DECEMBER 31,1999 AND 1998 1999 _ _ Electric Operations Water Operations Eliminations Total 1998 Total REVENUES: Sales to consumers $ 9,069,361 $ 3,436,609 $ 0 $ 12,505,970 $12,236,917 Cons umer electric refund (991,001) 0 57.789 (933,212 (013,17 Inlerdivisional sales 799,165 876 (800,041) 0 0 0 Standby fees 31,259 208,726 0 239.985 256.240 Income from investments 224,115 284,174 (60,231) 448.058 499,009 Other 224,398 133,988 0 358,386 342,546 9,357,297 4,064,373 1802.483) 12,619,187 12,421534 EXPENSES: Power purchases 4,385,928 520.216 (520,216) 4,385.928 4,895,065 Operations and maintenance 1,218.950 1,115,370 0 2,334 320 2.183.722 Admialstrative and general 1,266,990 693.957 (222.036) 1,738,911 1,805,839 Consumer services 351,095 93.342 0 444.437 430,390 Interest 215,729 842,512 (60,231) 998.010 1,047.154 Use and deterioration of plant 893,275 678.907 0 1,572.182 1,448 505 8.331.967 3,944,304 (802483) 11,473.788 11810,675 REVENUES IN EXCESS OF EXPENSES 1,025.330 120,069 0 1,145,399 610,859 CONSUMERS'FUNDS: Consumers'funds,December 31,1998 12.780,959 4.142,885 0 16.923,844 16.312.985 Consumers'funds,December 31,1999 $ 13.806,289 $ 4.262.954 $ 0 $ 18,069,243 $16,923,844 TENTATIVE & FRE-LI{VIII`JAWi FOR DISCUSSION PURPOSES ONL`f` JDRA EXHIBIT III TRUCKEE DONNER PUBLIC UTILITY DISTRICT COMPARATIVE STATEMENTS OF ELECTRIC OPERATIONS FOR THE YEARS ENDED DECEMBER 31, 1999 AND 1998 1999 1998 REVENUES: Sales to consumers $ 9,069,361 $ 8,862,727 Consumer electric refund (991,001) (962,806) Interdivisional sales 799,165 655,809 Standby fees 31,259 33,433 Income from investments 224,115 225,805 Other 224,398 245,224 9,357,297 9,060,192 EXPENSES: Power purchases 4,385,928 4,895,065 Operations and maintenance 1,218,950 1,090,358 Administrative and general 1,266,990 1,347,737 Consumer services 351,095 327,813 Interest 215,729 206,962 Use and deterioration of plant 893,275 803,833 8,331,967 8,671,768 REVENUES IN EXCESS OF EXPENSES $ 1,025,330 $ 388,424 "Tentative & Preliminary" For Discussion Purposes Only DRAFT EXHIBIT IV TRUCKEE DONNER PUBLIC UTILITY DISTRICT COMPARATIVE STATEMENTS OF WATER OPERATIONS FOR THE YEARS ENDED DECEMBER 31, 1999 AND 1998 1999 1998 REVENUES: Sales to consumers $ 3,436,609 $ 3,374,190 Interdivisional sales 876 875 Standby fees 208,726 222,807 Income from investments 284,174 306,922 Other 133,988 97,322 4,064,373 4,002,116 EXPENSES: Power purchases 520,216 442,681 Operations and maintenance 1,115,370 1,093,364 Administrative and general 693,957 622,477 Consumer services 93,342 102,577 Interest 842,512 873,910 Use and deterioration of plant 678,907 644,672 3,944,304 3,779,681 REVENUES IN EXCESS OF EXPENSES $ 120,069 $ 222,435 "Tentative & Preliminary" For Discussion Purposes Only r • Public b District Monthly Activity Report TO: Board of Directors From: Alan Harry, Director of Telecommunication Services Date: May 12,2000 During the month of April '00, in addition to taking time off for a family vacation, I focused my attention on four related areas: 1. Broadband Technology education 2. Legal Action-USA Media 3. Discussion with telecommunication/broadband companies 4. Nevada LAFCo In orderto ensure that misconceptions regarding the District's proposed telecomm/broadband plan are put to rest in a timely fashion, staff continues to speak to District customers, local businesses&service groups regarding the concept of providing broadband/telecommunication services within the Truckee Community. As part of this process, Peter Holzmeister and I attended a meeting of the Sierra High Technology Council to discuss our Broadband proposals, and presented the Districts broadband/telecommunications proposal to the Truckee Soroptimists Club xxx Litigation continues between the District and USA Media. Reports shall continue to be brought to the Board during closed sessions as our cases move forward. xxx In order to stay apprised with the expanding technology within the Telecommunications industry I have entered into ongoing discussions with new and long standing firms focused on the provision of broadband/telecommunication equipment,content and service. xxx To complete the District's application to Nevada County LAFCo I prepared and delivered our final package to the Commission. This batch of data included the District's Business Case, Marketing Study, Legal Opinion regarding the Districts right to provide broadband services, and the Board approved allocation of $5,000 to hire the Commissions Special Legal Counsel to review our request. 0 Page 1 �� TRUCKEE DONNER DistrictPublic Utility Monthly Activity Report To: Board of Directors From: Kathy Neus, Support Services Manager Date: 0 5/1 212 0 0 0 Purchasing and Warehousing There is no doubt that the construction season has begun. The materials that were bid are now arriving. The daily challenge is to find storage room. Its like playing musical chairs trying to fit material and supplies into every nook and cranny that can be found. Every day material is being moved around, placed in order of priority;then it seems that the priority list changes. Building and Grounds Support Services has been without a body in this position for quite some time. I have contracted out all jobs and functions that are possible and have pestered Jim Wilson continuously to find time in his busy schedule to help with repairs in the building. Meter Readers If there is an area where things are not too hectic yet, it is here. The annual seal check has begun; this is the visual inspection of the meter panel and the service drop. This slows meter reading down as each meter is visited.OMR does not help in this case. Vehicle Maintenance This is another area without a District employee,yet we have two excellent mechanics maintaining the District's fleet. Chris Brouwers is handling all pickups and jimmies and Glen Wagner continues to handle all the vehicles that are inspected by the Highway Patrol.This arrangement is working well for all. 0 Page 1 TRUCKEE DONNER Public Utility District Memorandum To: Board of Directors From: Ed Taylor,Water Superintendent Date: 05/11/00 PROJECTS The Brockway well is complete and test pumping is underway. The anticipated on-line date for the well is June 23, 2000. WATER QUALITY We have monitored the Hirschdale Treatment Plant on a daily basis and the aesthetic quality of the water has been excellent all month. Preventative maintenance was performed on equipment Water samples were taken each week during the month. Routine daily rounds were made, taking chlorine residuals throughout the system. The monthly bacteriological report for April was sent to the Department of Health Services. The District has met the State's drinking water standards for the month. SYSTEM OPERATIONS AND MAINTENANCE Three leaks were repaired One fire hydrant was repaired. USA marking for Southwest Gas pipeline project was started. The crew assisted the Electric Department installing conduit on Jibboom St. Prosser Annex Well pump failed; repairs are underway. 0 Page 1 7 II I Staff Report To: Board of Directors From: Stephen Hollabaugh - Power Supply Engineer Date: May 11, 2000 • Power Supply 2001 & 2002: At the April 19t' Board meeting, we discussed the power supply costs for 2001 and 2002. On April 2011, the District fixed costs for the entire load for 2001 at a price equal to $35.17 + $2.25 MWH + $1.50 kwH of demand based on Truckee's actual take for the month. This was the price discussed at Board meeting. For the 2002 year, we fixed the price for 5MW yearly block of power at $33.50 + $2.25 MWH+$1.50 kwH of demand. This accounts for about 113 of the Districts actual power needs for 2002. Since April 20"' the price for power in 2001 and 2002 has gone up about$3.00 MWH. Therefore was a good time to fix our costs for 2001 and part of 2002. l will continue to monitor prices for 2002 and keep the Board informed. • Union Negotiations: i have been working with Peter on the Union ongoing negotiations. I believe we are making progress. Peter will give you an update as to the status of the negotiations. • GIS Strategic Plan Issue: (Graphical Information System): We have been receiving resumes for the GIS Coordinator position. The closing date for accepting resumes is May 26. 1 have put together a mapping conversion data packet for CADP. CADP will evaluate our data and give us an estimate for conversion. i am also helping with the Fiber Backbone project as to the field data collection needed for this project. I hope to use a lot of this data with our future mapping system. • MWISA (Mountain West Independent System Administrator) & NorthWest RTO (Regional Transmission Organization): The MWISA is currently wrestling with the issue of funding and start-up date with the PUCN. Sierra Pacific has rescently joined a group of northwest utilities to discuss and forma Northwest RTO. These utilities have to file their plans to FERC by Oct. 15, 2000. If the Northwest RTO does become viable, it will replace the MWISA, as the MWISA is an interim organization designed to "bridge" the gap between now and when an RTO is formed. • Western Area Power Administration 2004 Marketing Plan: We are still waiting for WAPA to announce their allocations. •Page 1 ss 0�Ix�fii Monthly Staff Report To: Board of Directors From: Bob Quinn, Electric Superintendent Date: May 12, 2000 Electric Department crews worked on the following projects during the month of April: The service crew installed 26 overhead and 4 underground new electrical services and responded to 138 requests for underground facility locates (USA's). Crews continued to replace, or add additional transformers to, transformers that were overloaded because of new construction and growth. The District's electricians continued work in the commercial row alley converting panels to the new underground system. Additionally, considerable time was spent in the District's water facilities. The line crew continued work on the Hwy 267 Bypass project. The line crew began the installation of facilities for the new golf course off Northwoods Blvd. Tahoe Donner substation was taken off line and the circuit reclosers were overhauled. Additionally all hardware within the station was checked for tightness and conductor leads to the reclosers were upgraded. Electrical department staff continued GO 95 / GO 128 inspections and patrolled the distribution system evaluating hazardous tree problems. Planning staff of this department continued work on numerous new development projects. • Page 1 DONNER Staff Report To: Board of Directors From: Scott Terrell Date: May 11, 2000 Note: Since most of these projects are ongoing, Staff continues to report the basic information and highlights the activities that have occurred during the reporting month. When a project/activity is completed it is reported, then deleted from this report. Strategic Planning/District$Savings Key Accounts Program- Staff will be in touch with KA customers this year regarding their wants and needs and feelings (opinions) about TDPUD. Staff is waiting to contact KA customers until the outcome of TDPUD's plans regarding telecommunications is known. TDPUD Building GSHP Proposal- staff would like to re-visit this project idea with the Board in the near future. This project is on-hold pending the District's Strategic Planning process outcome. Deregulation Education- I am attending various courses, seminars, workshops and meetings to help me keep up with deregulation and "competition"activities. Conservafion/DSM/Economic Development/Public Benefits Public Benefits Program- TDPUD has received and processed about sixty applications for the Conservation Cash Rebate programs. A bill stuffier was recently mailed out to promote the cash rebate programs. TDPUD is currently having a CEA Lighting Analysis performed for the Truckee Schools. The results of this analysis should be available mid-May. The installation of the Solar PV system for Sierra High School will occur this Spring. Schools Energy &Water Conservation Education Program- This program is designed to teach both energy and water conservation education and will include actual energy and water conservation measures the children can use in their parent's homes. Sierra Mountain Middle School has begun implementing this program with assistance from Americorps and TDPUD staff. So far the Living Wise program has been received very well. It is anticipated that the School District will want TDPUD to provide them with several hundred more kits beginning this Fall. TDPUD Programs & Services- Staff is currently collecting information and ideas about some possible future programs and services for TDPUD customers. Staff will be researching whole-house surge protection and "fiber-optic" building security systems for the benefit of our customers. Alan and Scott recently met with a representative from Energy Solutions Network to discuss a $5M grant to research some broadband/intemet applications with substantial potential benefit to users. The grant currently has the support of Battelle Labs, Coactive Networks, Continental Control Systems, NCPA, Sacramento Municipal Utility District and SRC Systems. Ground Source Heat Pump Bulk Purchase & Installation Program- Staff is currently looking into new ideas on how to educate and promote this technology to our customers. Staff is currently planning to offer a few evening GSHP seminars to provide customers with information to help them begin planning their GSHP installations. Business & Energy Efficiency Partnership- The Truckee Donner PUD/Sierra College Partnership project is designed to encourage local groups, clubs and individuals to tour the energy and water- efficient Sierra College facility. TDPUD uses the grounds as a demonstration of low-water using plant types and water conserving irrigation systems. TDPUD Staff is available for guided tours. The TTUSD School District is planning to use this facility in conjunction with the Living Wise kits. Energy Surveys/High Bill Assistance- Staff completed 0 commercial and 1 residential energy- use analyses and/or energy survey(s)this month. Staff also responded on-site to 1 residential "high" bill complaint(s). There are currently no survey requests pending. Solar Home Tour-A tour of 7 sites with solar, geothermal heat pump, energy conservation and water-efficient landscaping applications are planned for Truckee in October. A bill stuffier is planned to promote this event. Communications/Public Relations/Education Newsletter- The Spring 2000 newsletter is currently being worked on. This issue will focus primarily on Telecommunications. Marketing & Media- Our current marketing efforts focus on community conservation cash rebate programs, low electric rates & high power reliability and TDPUD's efforts in promoting environmental- clean air, high water quality and the local economy. TDPUD will also be a part of the Sierra Lifestyles program in July/August. TDPUD will be interviewed on a topic of interest as well as be able to market TDPUD "commercials" during this period. Community Event Marketing-TDPUD has been providing marketing support for the following activities: Truckee Spring 2000 Home Show, Chamber of Commerce Windows on History event, Truckee-Donner Historical Society Social/Presentation, Sierra Nevada Children's Museum Circus benefrUfundraiser. Other activities planned for this year include: the Truckee- Tahoe Airport Air Affair, the School District promotion of Student Excellence, railroad Days, Donner Party Hike and possibly the Nevada County Fair. Power Content Label- State law requires that all California public and private utilities supply their customers with a Power Content Label quarterly. The next quarterly label will go out in June. Water Bottle- The new TDPUD water bottle is getting a lot of attention. There have been requests for bottles to take to meetings and other events. If you have a meeting or event you would like to take water bottles to give me a call. Truckee-Tahoe Affair- The Airport District has decided to put together a new Truckee event at the airport called the Air Affair. This event scheduled for June 24 will involve many different activities including a dinner and dance. TDPUD has volunteered to co-sponsor this event as well as use the May/June billing to promote the event. Water Display- Sierra Nevada Children's Museum recently asked TDPUD to help them develop a water display for the kids at the museum. Staff is currently working with Americorps and museum staff to build the display. The display is ready for viewing with some upgrades planned. Community/Statewide Involvement California Municipal Utilities Association Energy Services and Marketing Committee- The Committee is working on projects and programs to help CMUA member utilities prepare for deregulation. Staff recently began participating in Legislative Committee conference call meetings. Association for Efficient Environmental Energy Systems- Staff participates in quarterly meetings of the California Utility & GEA GSHP Collaborative. The California Collaborative was formed to oversee the development and promotion of the GSHP industry in California. The next meeting is scheduled for July 14 in Truckee. Utility Energy Forum Planning Committee- The next Conference is scheduled for May 17-19, 2000 in Granlibakken, Lake Tahoe area. A post-conference meeting is planned for July in Truckee.