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HomeMy WebLinkAboutRES 1996-11 - Board RESOLUTION NO. 9611 OF THE TRUCKEE DONNER PUBLIC UTILITY DISTRICT AMENDING PORTIONS OF TITLE 3, FINANCE AND ACCOUNTING, OF THE TDPUD CODE WHEREAS, it has been determined by the Board of Directors of the Truckee Donner Public Utility District that portions of Title 3, Finance and Accounting, are in need of updating, NOW, THEREFORE, BE IT RESOLVED by the Board of Directors of the Truckee Donner Public Utility District that as of the date of adoption of this resolution, the amendments to Title 3, Finance and Accounting, attached hereto shall become effective. PASSED AND ADOPTED by the Board of Directors at a meeting duly called and held within the District on the third day of April 1996 by the following roll call vote: AYES: Jones, Maass and Hemig. r NOES: None. ABSENT. Aguera and Sutton. TRUCKEE DONNER PUBLIC UTILITY DISTRICT ByZ�2e Q-�2 Peter L. Holzmeister, C1 rk of the Board ATT S san M. Craig, Deputy Dlibict Clerk smc TITLE 3 FINANCE AND ACCOUNTING CHAPTERS 3.01 Budgeting 3.04 Auditing 3.08 Purchasing 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 BUDGETING Sections: 3.01.010 Budget Control 3.01.010 Budget Control 3.01.010.1 Annually the General Manager shall cause to be prepared for submission 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. id adeptieR ef the bud t by the 13eaFd of 3.01.ni�''10.2 ge MaRageF shall Gause the budget tG be divided -iRte pFejeGted FAeRthly estimate C�,�,� reyenec_and expe�-s-. EaGh sh�l be_ tttC 13 Fd Gil r,.�GFG Ae♦►� showiRg budget �y l-reyenes arr evnencec An-date #eiiewiag-the-fe FFnat Gf-*—il"iestatement. 3.01.010.3 The General Manager shall cause to be prepared a memorandum accompanying the quarterly budget report which exGeediRg the budget to date by 0 r-- te-date-by-2% eF+n9Fe describes any significant variance from planned expenditures, and any proiects or needs that have occurred since adoption of the budget that were not anticipated at the time the budget was prepared and adopted. Title 3 Page 1 3.01.010.4 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 shall submit a recommendation to the Board of Directors for a budget amendment }reRsfeF G ✓ funds. 3.01.010.5 EaGh mnn}h the General MaRa ,er shall nay use W he prepared and submitted ' ' sheet,aRGe n r�Lf� en�ll he pp ilftvec}mnn}e +nr_statement statesme }' statesmen} ennan� , -1 - -- re-ir dffRGIS. These repG -h pFenared in n fin rmn} }d�_}).w��icthe Delete - covered in section 3.16.030.7 (A) (Minute Order 89-43, Res. 9522) CHAPTER 3.04 AUDITING Sections: 3.04.010 Publication of Annual Audit 3.04.010 Publication of Annual Au Tal - A summary of the annual audit shall be published in the local newspaper of oen circulation- within 30 days after completion of the audit. (Minute Order 88-187, 811188 and MO94-13) CHAPTER 3 . 08 PURCHASING 3 . 08 .010 Bid Procedure for Purchase of Commodities or Equipment over $10, 000 . Prior to issuing a purchase order for the purchase of any item the dollar value of which exceeds ten thousand dollars ($10, 000) , 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 Buyer\Clerk determines that there is a need to issue a purchase order the amount of which exceeds ten thousand dollars ($10, 000) , 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 approves the request, shall cause a public notice to be published in a 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 or when selling surplus materials, equipment of property, 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. rocedure for Purchase of Commodities or Equipment Under $10, 000 . Prior to issuing a purchase order for the purchase of any commodity or equipment, the dollar value of which exceeds five thousand dollars ($5, 000) , but is less than ten thousand dollars ($10, 000) , the following procedures shall be followed. 3 .08 .012 . 1 The General Manager, a Department Head, or the Buyer\Clerk is authorized to issue a purchase order as defined in Section 3 . 08 . 012 after having first secured three informal telephone quotes, recorded in writing. In securing the quotes ,.� the vendors must be asked to state any price discount and any payment discount terms that the vendor will offer the District. In the event that three quotes cannot be obtained, the purchaser shall provide the General Manager with a written explanation and receive the Manager's approval prior to issuing the purchase order. 3 . 08 . 012 .2 The purchase order shall be issued to the lowest responsive vendor taking into consideration price and payment discount terms, and delivery date. 3 . 08 .012 .3 Purchase orders for the purchase of commodities or equipment the dollar value of which is less than five thousand dollars ($5, 000) may be issued by the General Manager, any Department Head, or the Buyer\Clerk from any vendor after considering price, terms and delivery schedule. Bid Procedure for Issuance of Service Contracts Over $10, 000 . Prior to entering into a contract for services, the dollar value of which exceeds ten thousand dollars ($10, 000) , the following procedures shall be followed. 3 .08 . 014 . 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, or environmental services . 3 .08 . 014 . 1 When the General Manager, a Department Head or the Buyer\Clerk determines that there is a need to issue a contract �-� for a service to be performed the dollar amount of which exceeds ten thousand dollars ($10, 000) 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 .014 .2 The General manager shall review the memorandum and, subject to the provisions of Section 3 . 08 . 014 . 3, if he approves of the service, shall cause a public notice to be published in a local newspaper of general circulation requesting interested parties to submit sealed bids . The bids shall be publicly opened and read at the date, time and location specified in the public notice. 3 .08 .014 .3 If the service is such that plans and/or specifications need to be prepared by a consultant, and the cost of the consulting service exceeds ten thousand dollars ($10, 000) , the General Manager shall submit the matter to the Board of Directors for consideration before authorizing the consultant to proceed. 3 .08 .014 . 4 If the service to be contracted is of a nature that will attract bids from local contractors, the public notice shall be in small display ad form in the local newspaper of general circulation. In addition, the consultant will place �., advertisements in the appropriate trade journals . If the project will not attract local bidders, the ad is to be placed only in the public notice section of the newspaper. '^ 3 . 08 . 014 .5 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 service contract . 3 . 08 . 014 . 6 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. Procedure of Issuance of Service Contracts Under 00 Prior to issuance of a contract for a service the dollar amount of which is less than ten thousand dollars ($10, 000) , the following steps shall be followed. 3 . 08 . 016 . 1 The General Manager shall cause plans and\or specifications to be prepared. 3 . 08 . 016 .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 . 016 .3 The contract shall be awarded by the General Manager to the lowest responsive contractor taking into consideration price and completion date. 3 . 08 . 016 . 4 The General Manager may renegotiate and\or renew ,-- contracts upon their expiration. CHAPTER 3.12 ACCOUNTS RECEIVABLE Sections: 3.12.010 Sundry Account Billing 3.12.020 Delinquent Accounts Receivable 3.12.010 Sundry Account Billing - A sundry account is a bill rendered by the District to a party to whom the District has rendered a service or provided a gocd for wh;ch the Title 3 Page 2 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 billing 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 sundry accounts. 12.010.2 When any department of the District notifies the Administrative Services IF;iaaase Department that a billable service or good has been provided, the Administrative Services €iF;aflse Department shall promptly render a bill to the appropriate party-in-a . The sundry account bill is due and payable 19 days after the billing date. 3.12.010.3 If the Bill remains unpaid after 30 days, the bill shall be considered delinquent and shall be assessed a late charge in accordance with current District policy, and a second request for payment shall be promptly mailed. 3.12.010.4 payment and stating that GGlIeGti9R PFGGedUFes will GGGUF *if paymeRt is not Fereiyed 3.12.010.5 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. 3.12.010.6 The General Manager is authorized to act within his discretion to alter the time periods set forth in this policy when a sundry account customer is cooperating with the District in resolving an unpaid bill. a'GGGH A-6hall--bi,,-,^pF^,,.,� ted t-G-the-BtYC'Fd t -P'1iro�Frs�- p;epGsed Ettt"t�t"td7" d ie�JiB�"a�Ct Y f.' �'F'�'�'�' (Minute Order 89-44) 3.12.020 Delinquent Accounts Receivable - At the end of June and December of each V year, the 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.GORGUFFent with the appFGpFate / reepeF ✓ aseaU te-a-setleetien-agensY-iA-sFdeF te-n"eGtuate fit. Title 3 Page 3 The BeekkeepeF shall pFepaFe a wFitteR FepeFt feF the BeaFd of DiFeGtGF6 iRdiGatiRg7_w whatever-astiert-i s Dante-this-Pel+sy- 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. Further, 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. Should delinquent accounts exceed the authorized limit, the request for approval shall come before the Board of Directors for consideration. (Res. 8110) Title 3 Page 4 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 without prior Board approval for the following items: 3.16.010.1(A) Consumer deposits- one year 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; line extension refunds. 3.16.010.1(C) Contracts - maintenance contracts on District equipment, fadies and le�G�f-same. 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 olic including contracts for consulting and construction services. 3.16.010.1(D) Directors - monthly compensation. 3.16.010.1(E) District credit card payments —te-aveid-', -rhaFges the bills paid e-a-time-and-tisted-spa-t#e-nexti'� #aF oaFd-appfe �val-fef-appreva . In the event a dispute occurs, settlement to be handled by parties involved. 3.16.010.1(F) Employee benefits - deferred compensation deposit, pension payments, (iti., Geefg-- GattaR, Har-tferd,- A) first day hospital deductible reimbursement, aad V vision reimbursement and any other reimbursement pursuant to the District's agreement with the International Brotherhood of Electrical Workers, Local 1245, 3.16.010.1(G) Expense checks-advances for meetings, seminars, conferences, etc., for staff, aad manager and board members. Reimbursement for mileage and approved out of pocket expenses. 3.16.010.1(H) Insurance - life, health, disability and _dental premiums ret� / 3.16.010.1(1) Payroll - employee checks, payroll transfers, meals, union dues, employee savings deductions, state compensation, FICA, SDI, personal income tax, state unemployment, and miscellaneous employee payroll deductions. Title 3 Page 5 �-, 3.16.010.1(J) Petty cash - reimbursement of fund. 3.16.010.1(K) Postage - Postage Permit No. 1, stamps, trust fund, postage meter and bulk mailing permit deposits. 3.16.010.1(L) Repayment of Tahoe Donner intra-fund +eteFfund loan (journal entry only; no actual check). 3.16.010.1(M) Loans - Repayment of loans that have been approved by the Board of Directors. REA, GGmputeF, GeFtifiGate of PaFtiGipatiGR payMent feF building, Where practicable, the payment will actually be wire transferred to the lending institution on or before the payment due date. 3.16.010.1(N) State Board of Equalization - sales tax, energy surcharge collected. 3.16.010.1(0) Wholesale power expenses including but not limited to the Northern California Power Agency and Sierra Pacific Power Company— whole-sale ^ewer-bil; eleGtFiGutility billsOR pump stations and wells. Payments may be by wire transfer to the bank account number provided by vendor. 3.16.010.1(P) Bid items - where the Board has authorized bid purchase and the invoice r^ is the same dollar amount or less than authorized contract. 3.16.010.1(Q) Monthly and annual building utility expenses for telephone, garbage, heating, sewer collection and treatment (TTSA and TSD) and utilit bills paid to other agencies such as electric utility bills for pump stations and wells. 8�-88-1-4-1--aid-88 75-- rospeGtivchFl 3.16.010.1(S) The Manager may approve payments required in an unpredicted emergency situation. 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 $10,000 $3,000 and, in instances where the Board of Directors has issued authorization for an expenditure greater than $10,000 d+sset mey-be-Fealized-GF-peRalties avoided, eveF$3,090. 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 t/ Directors f9F BeaFd Feyie . Backup documents will also be available for Board review in the Administrative Services Department (Resolution No. 9108) Title 3 Page 6 /AP 3.16.020 Bills for Board Approval - Bills which may be controversial should be listed as a special agenda item. (Board direction, 12/5/78) Title 3 Page 7 ,— 3.16.030 Accounts Payable 3.16.030.1 Upon presentation of invoices for goods and services and other financial obligations of the District in the format prescribed in Title 3, Chapter 3.08, Purchasing, to the Administrative Service Department, the Treasurer shall be authorized to issue payment for such invoices. In the absence of the Treasurer, the General Manager shall be authorized to issue payment. 3.16.030.2 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 tax has been calculated correctly; that the appropriate authorization appears on the invoice; that the correct work order number and account number or budget number and account number 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 $5,000 have been approved by the General Manager and that invoices greater than $10,000 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 shall run / the checks for payment and print a check register listing the number of each check issued, the ✓ vendor paid, and the amount of the total check. 3.16.030.4 The Treasurer shall then verify that the accounts payable ed4 check register and the shesk warrant register match, that the invoices have been properly processed and that the expenditures have been made in accordance with the District's purchasing procedures. 3.16.030.5 The Treasurer or General Manager shall then process the checks through the District's automated check signing machine using the facsimile signature of either the Treasury," or the General Manager. The automated check signing machine shall be one that allows for a removable facsimile plate which will be kept locked up when not in use. The machine will also require two keys to activate; the two keys will be kept by two different employees. 3.16.030.6 In the event that a manual check needs to be issued outside of the regular weekly check run, the check will require two signatures. The two signatures can be any two authorized checking account signatures. Individual Directors,the General Manager and the District Treasurer shall be authorized to sign on the District's checking accounts. 3.16.030.7 At the monthly business meeting held by the Board of Directors: 3.16.030.7(A) The Board will be presented with the following reports: 3.16.030(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, the amount of the checks r 3.16.030(A)(2) Statement of general fund showing the beginning checking account balance, the categories of cash received by the District during the month, a summary list of the cash Title 3 Pagel disbursements made during the month, any authorized or preauthorized transfers in or out of the general fund and the ending balance at the end of the month. 3.16.030(A)(3) Investment report showing the status of the District restricted funds. 3.16.030(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(A)(6) Monthly budget report showing the status of budgeted expenditures compared to actual expenditures. 3.16.030(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. 3.16.030(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 the monthly business meeting. 3.16.030(C) The Treasurer shall list on the agenda any invoice for purchases that have not been made in accordance with the District's purchasing policies as set forth in Title 3, Chapter 3.08, Purchasing. 14 , (Res. 9522) Title 3 Page 2 1.3 CHAPTER 3.20 INVESTMENTS Sections: 3.20.005 LAIF Investments 3.20.008 Wire Transfers 3.20.010 Investment of Surplus Funds 3.20.005 LAIF Investments 3.20.005.1 Authorization has been given for the deposit and withdrawal of monies in the Local Agency investment Fund 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 Wire Transfers 3.20.008.1 The Truckee River Bank is requested to honor, execute and process_the District's telephonic, telegraphic, written or oral requests for the transfer of funds between the accounts of the District at the Truckee River 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 named officers or employees of the District, Peter L. Helameiste-mar;-Chapman, jaesA—n"aass the General Manager, the Administrative Services Manager; °resident of the Board; be and are hereby authorized, directed and empowered for and on behalf of and in the name of 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 `o-, 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. Title 3 Page 8 /I, ,..� 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 other person or agency which may require copies, and that the certification of the (Secretary) Clerk as to the 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. (Resolution 9016) 3.20.010 Investment of Surplus Funds 3.20. A-tl40.1 All FestFiGted fuRds wherh will not be needed withinV �depesit tYt"i't'meFiGa 1"t't9tSA. GeFtivcrcft Gf-depositrtmt[tY"B'Qt'tk of AFneF*ba tY'1"&SA. 3.20.010.3 , The Manager and District Treasurer shall invest surplus funds, both restricted and general, in either the Local Agency Investment Fund, certificates of deposit, or other major banking investments which are allowable by / law and approved by the Board of Directors and yield the maximum return to the District. V A regular accounting of all fund activities shall be presented to the Board of Directors in the monthly Treasurer's Report at-the-#r-sr ►eetiRg-of-eash-MGRth. (Resolution 7911) CHAPTER 3.28 CONTRACTS MANAGEMENT Sections: 3.28.010 Change Orders 3.28.020 Contractor Insurance Requirements `~ 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 Title 3 Page 9 ,_. 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 $5,000. 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. (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. Title 3 Page 10 �-� 3.28.020.1 The form of insurance shall be broad form comprehensive general liability which includes coverage for bodily injury, property damage, and products-completed operations; automobile liability where applicable; workers compensation. 3.28.020.2 The minimum amount of insurance shall be $200,000 per occurrence and $400,000 in the aggregate. The General Manager shall consult with the insurance broker of record and/or an independent risk manager for advice on the insurance requirements for contracts that exceed $10,000, or that pose risk that, in the judgment of the General Manager, warrant more than the minimum insurance. 3.28.020.3 The General Manager shall, after consulting with the insurance broker of record and/or an independent risk manager, specify insurance requirements in contracts he is authorized to let; or, in the case of contracts that must be let by Board action, the General Manager shall, after consulting with the insurance broker of record and/or an independent risk manager, recommend insurance requirements to the Board of Directors. (Resolution 9031) CHAPTER 3.32 STANDBY CHARGES AND ASSESSMENT DISTRICTS Sections: 3.32.010 Collection of Delinquent Assessments 3.32.010 Collections of Delinquent Assessments - The follcwin; procedure is to be used by the District staff and by District Counsel in connection with the collection of / delinquent assessments-aFiS;Rg-eut Gf the-West-RiyeF Street AU-Ss-essneRt n,s+�—°R r a-pfeceduFe-ef-th+s type-fly-ssuld-be-used-its-sseaestiGn wit#-fwtufe assessment des. AM-Fefcr s ate-ta-th4a-West RiveF StFeet ssescFneRt-tti-tYtr.. Assessments are due on November 1st and February 1st of each year, and are delinquent on December 10th and April 10th, respectively. County records are generally not up to date, and therefore the County cannot determine that December 10th assessments are delinquent until approximately thirty days later, or approximately January 10th of the following year. Similarly, the County cannot determine that April 10th assessments are delinquent until approximately May 10th. 10� Following is the procedure the District has adopted: / 3.32.010.1 By January 10th and May 10th of each year, the District Treasurer Office V Title 3 Page 11 T..� Manager 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 Treasurer OffiGe Managef will then immediately send, by certified mail, a friendly collection letter, requesting payment within ten days, with copies to District Counsel and to the General Manager. 3.32.010.2 If not paid within ten days of the friendly letter, the District Treasurer 9#+se MaRagef will send, by certified mail, a demand letter. This letter will demand payment within five 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 five days, District Counsel will send a letter, by certified mail demanding immediate payment and indicating that the delinquency will be referred to Nevada County for foreclosure upon the parcel if not paid within ten days. Copies of this letter will be sent to the District Treasurer OffiGe MaRaW, the General Manager and the Board. 3.32.010.4 if not paid within ten days, District Counsel will refer the matter to Nevada County Counsel, and request that foreclosure be initiated against the delinquent parcel. Copies of this letter will be sent to the District Treasurer OffiGe-ref, 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 County Counsel to ascertain that the foreclosure proceedings are going forward on a proper schedule. (Resolution 8444) 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 12 Section 3.24.000 Restricted Funds 1) The Board of Directors will direct staff when monies collected by the District are to be considered as restricted funds. 2) Restricted funds will be invested pursuant to the District's investment policy as described in Chapter 3.20 Investments. 3) All interest earned upon said restricted funds shall adopt a character of and become part of the specific restricted account. 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. 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. Fees, Interest Earned and Reserve for Future Meters 3.24.020 Clarification Regarding Funds Collected for Future Meters 3.24.010 Re rioted Funds Collected for Facilities fees Interest Earned and Reserve for Future Meter -All facilities fees collected shall be identified as "restricted funds" and shall be invested at a best rate of return pursuant to Resolution No. 7911. All interest earned upon said fun shall adopt a character of, and become part of the specific re-stric'. d account. The $150 Domestic Water Conn tion Fee currently includes a $40 meter allocation. The meter portion shall be set aside as stricted funds and invested pursuant to Resolution No. 7911. Absent earlier Board actio the monies shall retain that character for a five year period, at which time the Board s 11 evaluate if it intends to install meters for domestic water. Thereafter, the review and alysis shall occur at least every five years until some final determination is made. It is pressly understood that the Board of Directors may, by resolution, modify this policy re rding meters at any time. (Resolution 7920) 3.24.020 Clarification Regarding Funds Collected for Fut Water Meters 3.24.020.1 Funds collected in the past and in the future from applican requesting water �... service to homes not previously served by the District shall be used by th District, at the time of system-wide installation of water meters, to defray the total cost o stem-wide water metering, and shall not be applied toward the cost of installing a water m er at the residential service of the particular individual who paid the fee. 3.24.020.2 Because the fees will be applied to the system-wide expense of wate Illeteling, &MY Stleh fees chalged in the past Or in the fluttlie shall be .