HomeMy WebLinkAboutMinutes - June 7, 2011 SSLODI CITY COUNCIL
SHIRTSLEEVE SESSION
CARNEGIE FORUM, 305 WEST PINE STREET
TUESDAY, JUNE 7, 2011
A. Roll Call by City Clerk
An Informal Informational Meeting ("Shirtsleeve" Session) of the Lodi City Council was held
Tuesday, June 7, 2011, commencing at 7:00 a.m.
Present: Council Member Katzakian, Council Member Nakanishi, Mayor Pro Tempore Mounce,
and Mayor Johnson
Absent: Council Member Hansen
Also Present: City Manager Bartlam, City Attorney Schwabauer, and City Clerk Johl
B. Topic(s)
B-1 Third Quarter Fiscal Year 2010/11 Water, Wastewater, and Electric Utility Department
Financial Reports (CM)
City Manager Bartlam provided a brief introduction to the subject matter of the quarterly updates.
Deputy Public Works Director Charlie Swimley provided a PowerPoint presentation regarding the
quarterly water and wastewater update. Specific topics of discussion included the water and
wastewater cash flow summary for operations, operating results, cash balances, bad debt write
off, and quarterly accomplishments.
In response to Mayor Pro Tempore Mounce, Mr. Swimley stated the debt service encompasses
the payment on plant upgrades for the White Slough facility.
In response to Mayor Johnson, Mr. Bartlam stated the communication and transportation line item
also includes utilities in general.
In response to Council Member Nakanishi, Mr. Swimley stated work for others includes work
done for other departments in the City including Electric Utility.
In response to Mayor Pro Tempore Mounce, Mr. Swimley confirmed that the $5 million figure for
restricted assets is the remaining committed proceeds that have not yet been issued.
In response to Mayor Johnson, Mr. Swimley stated the City is still collecting on the well situation
as part of the settlement agreement, 25 years remain on the 40 -year agreement, and
expenditures are typically less than revenues so it is a revenue generator. Further, Mr. Swimley
stated staff is not sure where the sludge is coming from as it could be from a few different
sources and it is coming from far away but staff is looking into it.
In response to Council Member Nakanishi, Mr. Bartlam stated approximately 58 cents of every
dollar spent is for regulatory compliance and most of those expenses are White Slough debt
service and operating related.
Electric Utility Director Elizabeth Kirkley provided a PowerPoint presentation regarding the electric
utility quarterly report. Specific topics of discussion included an overview, financial results, non-
power operating expenditures, power supply, power sales, billing statistics, bad debt, Energy
Cost Adjustment (ECA) revenue, Northern California Power Agency (NCPA) general operating
reserve (GOR), open position, and summary.
Continued June 7, 2011
In response to Mayor Johnson, Ms. Kirkley stated the GOR increase is due to the settlement at
the end of the last fiscal year and a transfer into that line item.
In response to Mayor Pro Tempore Mounce, Deputy City Manager Jordan Ayers stated the books
are maintained on an accrual basis and the presentations are made on a cash balance basis.
Mr. Ayers stated they can show both numbers in the future.
In response to Mayor Johnson, Ms. Kirkley stated the management services line item is NCPA
related and includes pool costs such as membership dues. Further, Mr. Ayers stated the debt
write off is a combination of both residential and commercial accounts but is primarily residential.
In response to Mayor Pro Tempore Mounce, Mr. Ayers stated the City uses CB Merchant for debt
collection.
In response to Mayor Johnson, Ms. Kirkley stated the Scheduling Coordination Balancing Act is
termed by NCPA and is used for collateral and security purposes.
In response to Council Member Nakanishi, Mr. Bartlam stated the ECA is designed to balance
energy costs based on usage through a monthly true -up to prevent large variations. Mr. Bartlam
stated energy is bought forward up to three years. Further, he stated utilities are still risky in that
there are unknown regulations and weather that comes into play, which drives supply and costs,
and it is a good idea for the City Council to have a working understanding of the same. The
electric utility benefits the City by generating approximately $7 million in transfers to the general
fund, providing an economic incentive for businesses, and contributing a $2 million cost of service
for billing, meter reading, and collections.
In response to Council Member Katzakian, Mr. Bartlam stated staff is in the process of reviewing
the tier options and will bring the matter back to Council for consideration in the near future.
In response to Myrna Wetzel, Ms. Kirkley stated the solar power increase is related to higher
public participation in the rebate and incentive programs.
In response to Mayor Johnson, Ms. Kirkley stated there is no longer a sunset for the 2.85% set
aside for public benefit monies.
C. Comments by Public on Non -Agenda Items
In response to Myrna Wetzel, Public Works Director Wally Sandelin stated security cameras in
the parking garage are coming and the cameras in the train depot are in the installation process.
Mayor Pro Tempore Mounce provided an update regarding the Governor's proposal as it relates
to enterprise zones, stating the revisions may result in a more effective program for the end user
and eliminate unnecessary paperwork and fees.
D. Adjournment
No action was taken by the City Council. The meeting was adjourned at 7:58 a.m.
ATTEST:
Randi Johl
City Clerk
N
AGENDA ITEM ' 1
70
CITY OF LODI
COUNCIL COMMUNICATION
• + TM
AGENDA TITLE: Third Quarter Fiscal Year 2010/11 Water, Wastewater and Electric Utility
Department Financial Reports
MEETING DATE: June 7, 2011
PREPARED BY: Deputy City Manager
RECOMMENDED ACTION: Receive utility financial reports for the third quarter of Fiscal Year
2010/11 ending March 31, 2011.
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 utility will be presented at the meeting of June 7, 2011.
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.
APPROVED:
Jor a Ayers
Deputy City Manager
Bartlam, City Manager
op Public Works Department
Water/Wastewater
IFY 11 Quarterly Update
(Through March 31, 2011)
City Council Shirtsleeve Session
June 7, 2011
Wastewater Fund
Cash Flow Summary
Operations
(Ending March 31, 2011)
Sales
Budget
13,527,180
Actuals
9,598,741
% of Budget
71%
Other (interest, septic, misc.)
155,500
(76,509)
(50%)
Total Revenues
Operating
13,682,680
7,5277960
9,522,232
4,120,016
70%
1i
55%
Debt Service
2,570,512
2,0561871
80%
Cost of Services Payment To
General Fund
11451,480
1,0881610
75%
Total Expenses
11,549,952
71265,497
63%
Net Increase in Undesignated
Reserves — Year To Date
21256,735
Wastewater
Operating Results
(Ending March 31, 2011)
Personnel
$
312829310
$
21370,316
72%
Supplies, Materials, Services
$
31138,144
$
11067,697
34%
Equipment, Land, Structures
$
659206
$
23,714
36%
Other Payments
$
1879100
$
53,567
29%
Communication & Transportation
$
818,500
$
6049722
74%
Work for Others
$
369700
$
-
0%
Total Operating Expenses
is
71527,960
is
4,120,016
1 55%
Wastewater Funds
Cash Balances
(Ending March 31, 2011)
E
Operating (170)
I
31901,530
Utility Capital / Infrastructure Replacement (171)
41482,650
Capital Reserve (172)
(Fund used to pay White Slough COP Debt Service)
(3,073,704)
Capital Reserve Restricted Assets (172)
(White Slough COP Remaining Proceeds)
51277,197
IMF (173)
2,019,984
Rate Stabilization Reserve (174)
250,000
Total
1298579657
Water Fund
Cash Flow Summary
Operations
(Ending March 31, 2011)
Sales
Budget
6,658,590
Actuals
5,580,304
% of Budget
88%
Other (interest, septic, misc.)
89,540
81,898
91%
Total Revenues
io
Operating
6,748,130
0
47776,965
5,662,202
3,079,809
84%
1
64%
Debt Service
1,524,878
12,047
0.8%
Cost of Services Payment To General Fund
1,060,120
795,090
75%
Total Expenses
7,361,963
3,886,946
53%
Net Increase in Undesignated Reserves —
Year To Date
11775,256
Water
Operating Results
(Ending March 31, 2011)
Personnel
$
1,403,580
$
937,108
67%
Supplies, Materials, Services
$
737,495
$
305,916
41%
Equipment, Land, Structures
$
81,640
$
40,846
50%
Other Payments
$
1,488,100
$
1,285,375
86%
Communication & Transportation
$
721,150
$
510,564
71%
Work for Others
$
345,000
$
-
0%
Total Operating Expenses
1 $
4,776,965
1 $
3,079,809
64%
Water Funds
Cash Balances
(Ending March 31, 2011)
M
Operating (180)
I
575417754
Utility Capital / Infrastructure Replacement (181)
673987105
Capital Reserve Restricted Assets (181)
(Water Plant Bond Remaining Proceeds)
3476947951
IMF (182)
284,214
PCE/TCE Settlements
1079807045
PCE/TCE Rates (185)
51228,286
Total
6371277355
Bad Debt Write Off
(Through March 31, 2011)
Water / Wastewater Utility
Accomplishments
op ).
Operational
■ Water Distribution
■ Water Production
■ Collection System
■ Wastewater Treatment
• Regulatory
• SSo's
■ Discharge Violations
■ Monitoring and Reporting
01
Electric Utility Department
FY1 1 Quarterly Update
(Through March 31, 2011)
City Council Shirtsleeve Session
June 7, 2011
1
Overview
Through March 31, 2011
0
0
0
0
Net power costs are 69.9% of budget
Non -power costs are 58.6% of budget
Debt Service costs are 69.7% of budget
Revenues are 70.2% of budget
• One time revenue from sale of CT1 (Roseville)
FY1 1 Financial Results
Through March 31, 2011
Investment Revenues
78,880
52,409
66.4%
Sales Revenues
72,019,230
49,679,438
69.0%
Other Revenues
425,000
1,184,484
278.7%
Total Revenues
72,523,110
50,916,331
70.2%
Purchase Power
43,205,800
30,183,779
69.9%
Non Power
11,782,509
6,904,705
58.6%
Cost of Service
2,856,390
2,142,293
75.0%
In -lieu Transfer to General Fund
6,976,670
5,232,503
75.0%
Capital Projects
4,079,559
1,546,640
37.9%
Debt Service
7,364,772
1 5,130,0491
69.7%
Total Expenses
76,265,700
51,139,969
67.1%
Net Chg in Bal Sheet Accts
1 1,373,848
Net Increase (Decrease)
(3,742,590)
(1,597,486)
Beginning Local Cash Balance
12,125,836
12,125,836
8,383,246
10,528,350
Beginning GOR
11,011,668
11,011,668
Net Increase (Decrease) in GOR
1,791,390
11,011,668
12,803,058
3
Non -Power Operating
Expenditures
Through March 31, 2011
Personnel
6,683,070
41281,804
64%
Supplies, Materials, Services
21279,286
1,084,447
48%
Equipment, Land, Structures
1,546,010
500,986
32%
Other Payments
1,203,203
990,438
82%
Communication & Transportation
70,940
47,032
66%
Total Operating Expenses
$ 111782,509
$ 61904,705
58.6%
Power Supply
Through March 31, 2017
Generation
$
35,727,071
$
2671517658
73.2%
Transmission
$
7,789,578
$
47875,734
62.6%
Management Services
$
1,401,170
$
1,072,160
76.5%
Third Party Revenue
$
(2,708,341)
$
(1,915,773)
70.7%
Adjustments
TOTAL
$
42,209,478
$
30,183,779
71.5%
5
Power Sales
Through March 31, 2011
July
2010
0
0
313
390
August
2010
0
0
245
363
September
2010
0
5
216
247
October
2010
94
76
1
0
November
2010
392
348
0
0
December
2010
457
609
0
0
January
2011
604
592
0
0
February
2011
483
391
0
0
March
2011
338
313
1
0
F—FY11 Total
2368
2334
776
1000
0
Billing Statistics
Through March 31, 2011
Residential
151,352,637
$
28,010,849
$
0.1851
Small Commercial
165,198,278
$
28,188,450
$
0.1706
Large Commercial/Small Industrial
35,290,459
$
5,244,767
$
0.1486
Industrial
93,898,999
$
10,575,165
$
0.1126
TOTAL
445,740,373
$
72,019,230
$
0.1616
Residential
113,797,143
$
19,923,326
$
0.1751
Small Commercial
114,927,004
$
18,687,306
$
0.1626
Large Commercial/Small Industrial
28,108,809
$
4,013,210
$
0.1428
Industrial
69,805,430
$
7,055,596
$
0.1011
TOTAL
326,638,386
$
49,679,438
$
0.1521
7
Bad Debt
Through March 37, 2070
0
ECA Revenue
Residential
(172,664)
319,326
8843819
1,031,481
Small Commercial
(1583469)
2943776
8363053
9723360
Large Commercial/Small Industrial
(469377)
729968
202,567
229,159
Industrial
(1169875)
1879946
554,897
6259967
Total ECA Revenue 1
(494,385)
8755015
21478,336
2,8589967
9
NCPA "GOR"
GOR levels
➢$11,011,688 (June 30, 2010)
➢$12,803,058 (March 31, 2011)
Interest Income/Budget Settlement $(1,993,843)
Scheduling Coordination Balancing Acct $(202,453)
$1,791,390 Increase
10
4
'��' 0
FY1 1 �,q `p "Open Position"
CrF�R�
11
44,273
0.00%
29,082
0.00%
15,727
0
0.00%
43,634
0.00%
28,638
0.00%
15,754
0.00%
40,620
0.00%
26,044
0.00%
15,358
0.00%
36,811
0.00%
23,334
0.00%
12,431
0.00%
28,838
0.00%
18,3121
0.00%
10,5261
0.00%
36,135
0.00%
22,929
0.00%
13,206
0.00%
35,983
0.00%
22,041
0.00%
13,942
0.00%
32,171
0.00%
20,801
0.00%
11,370
0.00%
34,814
0.00%
22,949
0.00%
11,865
0.00%
35,625
0.00%
23,098
0.00%
12,527
0.00%
(2,808)
40,089
-7.01%
(2,833)
25,043
-11.31%
25
15,045
0.16%
1,333
41,000
°0
359
27,404
1.31%
974
13,596
7.16%
FY Total 1 (1,476)
449,992
-0.3%
(2,474)
289,675
-0.9%1
998
161,349
0.6%
Bal Yr Total
(1,476)
rl51,528
-1.0°/
(2,474)
98,494
-2.5%1
998
53,033
1.9%
11
Conclusiori
ou,.Pp,.�
_Nhr.
Through March 31, 2011
• Net power costs are 69.9% of budget
• Non -power costs are 58.6% of budget
• Debt Service costs are 69.7% of budget
• Revenues are 70.2% of budget
• One time revenue from sale of CT1 (Roseville)
12