HomeMy WebLinkAboutMinutes - August 25, 2009 SSLODI CITY COUNCIL
SHIRTSLEEVE SESSION
CARNEGIE FORUM, 305 WEST PINE STREET
TUESDAY, AUGUST 25, 2009
A. Roll Call by City Clerk
An Informal Informational Meeting ("Shirtsleeve" Session) of the Lodi City Council was held
Tuesday, August 25, 2009, commencing at 7:04 a.m.
Present: Council Member Hitchcock, Mayor Pro Tempore Katzakian, and Mayor Hansen
Absent: Council Member Johnson, and Council Member Mounce
Also Present: City Manager King, City Attorney Schwabauer, and City Clerk Johl
B. Topic(s)
B-1 Fourth Quarter Fiscal Year 2008-09 Water, Wastewater, and Electric Utility Department
Financial Reports (EUD)
City Manager King briefly introduced the subject matter of the fourth quarter fiscal year 2008-
2009 water, wastewater, and electric utility financial reports.
Water Services Manager Charlie Swimley provided a PowerPoint presentation regarding the
fourth quarter water and wastewater financial reports. Mr. Swimley specifically discussed the
water and wastewater operating results ending June 30, 2009, cash flow summary operations,
cash balances, operating results, and water and wastewater utility accomplishments.
In response to Mayor Hansen, Mr. Swimley stated violations and permits do come out of
operating costs, although they are not necessarily budgeted for because the goal is always to
have zero violations. Mr. Swimley stated that, if there is a significant change coming from the
State, a time schedule for implementation is issued and there is time to prepare budget wise. He
said he does not anticipate any significant changes over the next year.
In response to Council Member Hitchcock, Mr. Swimley stated the rate increase will bring in
approximately $1.7 million, the negative balance will remain until 2011 and will become positive
thereafter, and then the work will begin toward establishing a reserve.
In response to Mayor Hansen, Mr. King stated the impact mitigation fee line item is in the
negative because of the $1.2 million and the level of development is directly related to the impact
mitigation fee fund repayment.
In response to Council Member Hitchcock, Mr. King stated the City's impact fee program was
based on a formula that used the projected amount of units to be developed.
In response to Mayor Hansen, Mr. King stated new annexations are included in the sense that
the City does charge them.
In response to Council Member Hitchcock, Mr. King explained the two methodologies used for
calculating impact mitigation fees are the costs are equally spread out among all proposed units
regardless of whether or not they are built or equally spreading costs over only already developed
units.
In response to Council Member Hitchcock, Public Works Director Wally Sandelin stated three
years into the program there was a minor adjustment downward with no inflation adjustments for
Continued August 25, 2009
the years thereafter despite the fire station costs coming in higher than expected.
In response to Mayor Hansen, Mr. Sandelin stated the in -fill number for the area south of Century
Boulevard is approximately 800 units.
In response to Council Member Hitchcock, Mr. Sandelin stated funding sources for new
development could include impact fees, developer costs, and grants. He stated the grants are not
counted until they are received and are generally water related.
In response to Council Member Hitchcock, Mr. King stated generally changes in land value and
market value are reflected in adjustments. Mr. Sandelin stated staff will be looking at the policy to
establish the service area, establish the cost of service to the area, look at the number of units
affected, equally assess the costs accordingly, and the older area would roll into the new
program. Mr. Sandelin stated staff will be reviewing the program this Fall prior to development
starting up again.
In response to Mayor Hansen, Mr. Swimley stated the new sewer vacuum truck would cost
approximately $340,000.
In response to Myrna Wetzel, Mr. King stated there is a vehicle replacement program for existing
vehicles in the General Fund, although there is no reserve fund for adding new vehicles to the
fleet.
Electric Utility Director George Morrow provided a PowerPoint presentation regarding the
quarterly update for electric utility. Specific topics of discussion included an overview, financial
results, operating expenditures, power supply, power sales, billing statistics, Energy Cost
Adjustment (ECA) revenue, Northern California Power Agency general operating reserve, fiscal
year 2010 open position, cash balance, and summary.
In response to Mayor Hansen, Mr. Morrow stated the City spent approximately $4.7 million to
date on the new Lodi Energy Center and that money will be recoverable by the City when the
project goes to construction.
In response to Mayor Hansen, Mr. Morrow stated the bids for the next small purchase of power
are due tomorrow.
In response to Mayor Hansen, Mr. Morrow stated technology upgrades will allow for daily
usage data to be retrieved and then made available to customers over the next few years.
In response to Council Member Hitchcock, Mr. Morrow stated the data collection is done on a
drive by basis and the more remote collection of the data from a few larger receivers in the
community can be costly.
In response to Mayor Hansen, Mr. Morrow stated debt payment is due in August 2010
and revenues may be coming in from the debt service payoff and the Roseville payment.
In response to Council Member Hitchcock, Mr. Morrow stated adjustments to the ECA and base
rates are generally done at the same time.
In response to Mayor Hansen, Mr. Morrow stated there is a possibility in the future that the
ECA could turn into a negative or flat number throughout the year if the energy costs remain
steady and the new Lodi Energy Center comes on line.
C. Comments by Public on Non -Agenda Items
N
Continued August 25, 2009
None.
Adjournment
No action was taken by the City Council. The meeting was adjourned at 8:11 a.m.
ATTEST:
Randi Johl
City Clerk
AGENDA ITEM S s I
ift CITY OF LODI
COUNCIL COMMUNICATION
TM
AGENDA TITLE: Fourth Quarter Fiscal Year 2008109 Water, Wastewater and Electric Utility
Department Financial Reports
MEETING DATE: August 25,2009
PREPARED B Y Deputy City Manager
RECOMMENDED ACTION: Receive utility financial reports for the fourth quarter of
the fiscal year ended June 30,2009.
BACKGROUND INFORMATION: In accordance with the Lodi Municipal Code, quarterly
financial reports are to be prepared for the Water,
Wastewater, and Electric Utilities. Highlights of the operations and financial performance of
each utilitywill be presented at the meeting of August 25, 2009.
FISCAL IMPACT None directly related to the preparation of the report. However, the
presentation is intended to keep the Council apprised of the financial conditions of the major
municipal utilities.
Jordan Ayers
Deputy City Manager
APPROVED: 1
Blair .F4ng, ity Manager
� t 4
Public WorksDepartment
Water/Wastewater
IFY 09 Quarterly Update
(Through June 30, 2009)
City Council Shirtsleeve Session
August 25, 2009
Wastewater
Operating Results
(Ending June 30, 2009)
Personnel
3,068,836
2,989,408
97%
Supplies, Materials, Services
2,351,142
1,796,981
76%
Equipment, Land, Structures
115,270
58,345
51%
Other Payments
200,212
154,889
77%
Communication & Transportation
819,210
869,127
106%
Work for Others
43,960
0
0%
Total Operating Expenses
6,598,630
5,868,750
89%
2
Wastewater Fund
Cash Flow Summary
Operations
(Ending June 30, 2009)
M
Sales
I
6,686,530
Other (interest, rent, septic, misc.)
1,068,403
l Revenues
i
Operating
7,754,933
5,868,750
Debt Service
2,571,667
Cost of Services Payment To General Fund
1,451,478
Total Expenses
9,891,895
Net Increase (Decrease) in Undesignated Reserves
(2,136,962)
3
Wastewater Funds
Cash Balances
(Ending June 30, 2009)
Operating (170)
(8,591,927)
Utility Capital / Infrastructure Replacement (171)
16,587,976
Capital Reserve (172)
(21471,679)
(Fund used to pay White Slough COP Debt Service)
Capital Reserve Restricted Assets (172)
57630,912
(White Slough COP Remaining Proceeds)
IMF (173)
2,072,666
Total
13,227,948
0
Water
Operating Results
(Ending June 30, 2009)
Personnel
1,377,032
1,368,569
99%
Supplies, Materials, Services
933,512
683,310
73%
Equipment, Land, Structures
3,500
4,431
127%
Other Payments
1,267,750
1,448,075
114%
Communication & Transportation
882,340
804,766
91%
Work for Others
360,000
322,520
90%
Total Operating Expenses
4,824,134
4,631,671
96%
5
Water Fund
Cash Flow Summary
Operations
(Ending June 30, 2009)
Sales
6,544,230
Other (interest, rent, misc.)
1617763
inTotal Revenues
Operating
6,7057993
4,6317671
Debt Service
56,868
Cost of Services Payment To General Fund
1,0607122
Total Expenses
5,7487661
Net Increase in Undesignated Reserves
9577332
0
Water Funds
Cash Balances
(Ending June 30, 2009)
M
Operating (180)
I
21209,905
Utility Capital / Infrastructure Replacement (181)
11,788,937
IMF (182)
(4437881)
PCE/TCE Settlements
14,337,165
PCE/TCE Rates (185)
17640,500
Total
29,5327626
7
Water / Wastewater Utility
Accomplishments
- White Slough Improvements
- Waste Discharge Requirements (WDRI S)
- Water Meter Program
- Financial Health of Water/Wastewater
Utilities
Questions???
9
Electric Utility Department
FY09 Quarterly Update
(Through June 30, 2009)
City Council Shirtsleeve Session
August 25, 2009
Overview
• Power Costs down ~ $300K from budget
• Non -power Costs up ~$150K
• Revenues up about 1 M
• NCPA Cash Reserve (GOR) down 1 M
•
FY1 0 power supply is 92% hedged
• Overall increase in cash is about $300K
2
FY09 Financial Results
Cash Flow
Revenue
Projected
Actuals
Difference
Sales Revenues
73,252,805
74,000,779
1.0%
Other Revenues
955,000
1,238,395
29.7%
Total Revenues
74,207,805
75,2391174
1.4%
Expenses
Purchase Power
4607,976
46,378,892
-0.77/0
Non Power
12,4229535
12,584,200
1.3%
Total Expenses
595120,511
58,9639092
-0.3%
Net Revenue for Debt Service
1510871294
1612761082
7.9%
Debt Service
75064,307
75975,594
12.9%
Net Revenue
81022,987
8,300,488
3.5%
In -lieu Transfer to General Fund
6,8799414
699419960
0.9%
Net Increase (Decrease) in Working Capital
191439573
193589528
18.8%
Beginning Cash Balance 1193399624 1193399624
Changes in GOR - 190549456
Ending Cash Balance 1294839197 1196439696
3
Operat'ing Expenditures
PO P -
Personnel
6,317,083
6,002,159
95%
Supplies, Materials, Services
1,729,829
1,518,735
88%
Equipment, Land, Structures
909,151
602,974
66%
Other Payments
440,196
977,132
222%
Communication & Transportation
69,891
77,048
110%
Total Operating Expenses
9,466,150
9,178,049
97.0%
4
C0
n �P
9�rFOs
Power Supply
Generation
$
39,928,751
$
44,083,273
$
4,154,522
9.4%
Transmission
$
6,657,679
$
6,424,975
$
232,704
-3.6%
Management Services
$
2,208,641
$
2,433,988
$
225,347
9.3%
Third Party Revenue
$
(2,097,095)
$
(6,233,508)
$
(4,136,413)
66.4%
Adjustments
$
329,836
TOTAL
$
46,6979976
$
4693789892
$
(3199084)
-0.7%
5
C0
n �P
9�rFOs
Power Sales
July
2008
0
0
380
390
August
2008
0
0
415
363
September
2008
0
5
266
247
October
2008
36
76
53
73
November
2008
276
348
0
0
December
2008
645
609
0
0
January
2009
563
592
0
0
February
2009
387
391
0
0
March
2009
333
313
0
0
April
2009
189
169
41
18
May
2009
12
54
171
111
June
2009
1
6
211
254
FY09 Total
2442
2563
1537
1456
0
Billing Statistics
m
Residential
162,283,695
$
28,977,046
$
I
0.1786
Small Commercial
172,567,545
$
28,257,247
$
0.1637
Large Commercial/Small Industrial
36,183,700
$
5,419,878
$
0.1498
Industrial
98,062,899
$
10,598,634
$
0.1081
TOTAL
46990979839
$
7392529805
$
0.1562
Residential
153,487,430
$
29,017,617
$
0.1891
Small Commercial
167,528,360
$
29,108,124
$
0.1738
Large Commercial/Small Industrial
35,836,342
$
5,446,510
$
0.1520
Industrial
95,223,422
$
10,428,527
$
0.1095
TOTAL
452,075,554
$
74,0003779
1 $
0.1637
7
ECA Revenue
Residential
832,498
725,150
1,437,573
109,977
3,105,198
Small Commercial
833,776
746,906
1,414,592
150,297
3,145,572
Large Commercial/Small Industrial
176,414
158,323
310,165
30,742
675,643
Industrial
449,032
438,014
874,562
83,248
1,844,856
Total ECA Revenue
2,2911721
21068,393
4,036,893
3741263 1
81771,269
0
NCPA "GOR"
GOR levels
➢$6,959,239 (June 30, 2008)
➢$5,904,783 (June 30, 2009)
FY08 true-up/Interest income of $1,161,590
Solar Project /Power Exchange Income of $1,441,752
LEC Phase 2/Solar Project Costs of $3,657,798
$1,054,456 Decrease
0
FY1
�,q `p 1 "Open Position"
�r froR�
10
48,176
0.0%
31,586
0.0%
16,590
0.0%
(4,360)
48,722
-8.9%
(3,931)
31,910
-12.3%
(429)
16,812
-2.6%
(2,646)
43,019
-6.2%
(750)
27,556
-2.7%
(1,896)
15,463
-12.3%
(4,627)
37,393
-12.4%
(3,728)
24,526
-15.2%
(900)
12,867
-7.0%
(3,083)
34,170
-9.0%
(1,538)
20,979
-7.3%
(1,545)
13,191
-11.7%
(5,736)
36,792
-15.6%
(3,268)
23,342
-14.0%
(2,468)
13,450
-18.3%
(5,166)
36,569
-14.1%
(2,977)
22,356
-13.3%
(2,188)
14,213
-15.4%
(3,064)
32,505
-9.4%
(1,935)
21,011
-9.2%
(1,129)
11,494
-9.8%
(926)
34,971
-2.6%
(641)
23,058
-2.8%
(285)
11,913
-2.4%
(2,209)
34,561
-6.4%
(3,262)
22,453
-14.5%
1,054
12,108
8.7%
(1,311)
37,831
-3.5%
(1,963)
23,554
-8.3%
652
14,277
4.6%
(2,596)
42,840
-6.1%1
(2,514)
28,592
-8.8%
(82)1
14,248 1
-0.6%
FY Total (35,724) 467,549
-7.6%
(26,508)
300,923
-8.8%
(9,217)1
166,626
-5.5%
Bal Yr Total 1 (35,724) 419,373
-8.5%
(26,508)
269,337
-9.8%
(9,217)1
150,036
-6.1%
10
14, 000, 000
12, 000, 000
10, 000, 000
8,000,000
6,000,000
4,000,000
2,000,000
Cash Balance
O`b p`b p`b 0 d) Ob O� e 00 Op Op Op O°�
g � O
— — Cash Balance
11
Summary
• Power Costs down ~ $300K from budget
• Non -power Costs up ~$150K
• Revenues up about 1 M
• NCPA Cash Reserve (GOR) down 1 M
•
FY1 0 power supply is 92% hedged
• Overall increase in cash is about $300K
12