HomeMy WebLinkAboutMinutes - August 16, 2011 SSLODI CITY COUNCIL
SHIRTSLEEVE SESSION
CARNEGIE FORUM, 305 WEST PINE STREET
TUESDAY, AUGUST 16, 2011
A. Roll Call by City Clerk
An Informal Informational Meeting ("Shirtsleeve" Session) of the Lodi City Council was held
Tuesday, August 16, 2011, commencing at 7:00 a.m.
Present: Council Member Nakanishi, Mayor Pro Tempore Mounce, and Mayor Johnson
Absent: Council Member Hansen, and Council Member Katzakian
Also Present: City Manager Bartlam, City Attorney Schwabauer, and City Clerk Johl
B. Topic(s)
B-1 Receive Utility Financial Reports for the Fourth Quarter of Fiscal Year 2010/11 Ending
June 30. 2011 (CM)
City Manager Rad Bartlam briefly introduced the subject matter of the utility quarterly update.
Deputy Public Works Director Charlie Swimley provided a PowerPoint presentation regarding the
Public Works water and wastewater utility update. Specific topics of discussion included water
and wastewater cash flow summaries, operating results, cash balances, bad debt write-off, and
accomplishments.
In response to Mayor Pro Tempore Mounce, Mr. Swimley stated the development fees received
were associated with the water treatment facility and a PCE/TCE project.
In response to Council Member Nakanishi, Mr. Bartlam stated with wastewater everything that is
not spent from what is collected goes into the utility reserve.
In response to Mayor Johnson, Mr. Swimley stated there are still some wineries that continue to
truck waste out to the facility.
In response to Mayor Pro Tempore Mounce, Mr. Swimley stated the average cash on hand is 90
days for Lodi. He stated currently the utility well exceeds that amount because some money will
be spent on capital projects.
In response to Mayor Pro Tempore Mounce, Mr. Swimley stated previously the capital fund was
used to pay debt service and was not back-filled. He stated that account is now being back-filled
at $750,000 per year for debt service and when the balance is zero that fund will no longer be
negative.
In response to Council Member Nakanishi, Public Works Director Wally Sandelin stated the debt
service that was paid out of the capital fund was related to a bond issue for the White Slough
facility back in the 1980s.
In response to Mayor Pro Tempore Mounce, Mr. Swimley stated the Build America bonds will be
used for the water treatment facility bond issue.
A brief discussion ensued among Mayor Pro Tempore Mounce, Mr. Sandelin, Deputy City
Manager Jordan Ayers, and Mr. Bartlam regarding how cash on hand days are calculated with
the City and rating agencies and the inclusion of capital costs. Mr. Sandelin stated he will
Continued August 16, 2011
distribute to the Council the current financial model, which shows the true actual numbers for
operating.
In response to Council Member Nakanishi, Mr. Swimley stated the PCE/TCE line item was set up
some years ago to provide an accounting of the clean-up and settlement of PCE/TCE.
In response to Mayor Johnson, Mr. Swimley stated the actual costs associated with implementing
the latest state mandate associated with storm water drainage permits is unknown as is the effect
on local businesses.
In response to Council Member Nakanishi, Mr. Swimley stated the supplies and equipment line
item is considerably less because there were some roll overs from previous years that did not get
spent.
In response to Mayor Johnson, Mr. Sandelin stated the final resurfacing of Mills Avenue will occur
in October during the two week school break and the pipe on Turner has already been boarded.
Electric Utility Director Elizabeth Kirkley provided a PowerPoint presentation regarding the electric
utility quarterly update. Specific topics of discussion included electric cash flow summary,
operating results, cash balances, power supply costs, power sales, Energy Cost Adjustment
revenue, billing statistics, bad debt write-off, Northern California Power Agency (NCPA) general
operating reserve (GOR), open position, and accomplishments.
In response to Mayor Pro Tempore Mounce, Ms. Kirkley stated the reserve goal for the utility for
cash on hands is 90 days.
In response to Mayor Pro Tempore Mounce, Ms. Kirkley stated the revenues and expenditures
will be matched up throughout the year for timing purposes to ensure that the solar rebates do
not run out.
In response to Council Member Nakanishi, Ms. Kirkley confirmed the utility is mandated to set
aside 2.5% of revenues for public benefit programs, the funds can accumulate for use on a larger
energy efficiency project, and the average amount spent annually is approximately $900,000.
In response to Mayor Johnson, Ms. Kirkley stated the sale of excess power is done on a daily
basis at market rates, sales vary greatly depending upon the amount of the original purchase,
and there have been days when Cal -ISO is giving power away.
In response to Mayor Johnson, Mr. Bartlam stated staff is going to try to ratchet down the number
of days for delinquent accounts from 90 to 45 because the longer unpaid amounts turn into bad
debt write off.
In response to Mayor Pro Tempore Mounce, Mr. Bartlam and Mr. Ayers stated the City could pull
the amount of the GOR increase from NCPA if it so desired although NCPA currently has a better
interest rate.
In response to Council Member Nakanishi, Mr. Ayers provided an overview of how GOR
works, stating he will research the amount that has been over or under paid at the end of year
previously and provide those numbers as requested.
In response to Mayor Pro Tempore Mounce, Mr. Ayers stated the rating agency does not have a
preference for the money being held at the City versus NCPA.
In response to Mayor Johnson, Ms. Kirkley confirmed that overall there were no negative
N
Continued August 16, 2011
comments received with respect to automated meters and provided an overview of the energy
theft diversion program.
In response to Myrna Wetzel, Ms. Kirkley stated the new pole installation and testing is being
handled by Osmose, the City's contractor on the project.
C. Comments by Public on Non -Agenda Items
None.
D. Adjournment
No action was taken by the City Council. The meeting was adjourned at 7:55 a.m.
ATTEST:
Randi Johl
City Clerk
AGENDA ITEM � �1
&I& CITY OF LODI
COUNCIL COMMUNICATION
TM
AGENDA TITLE: Receive Utility Financial Reports for the Fourth Quarter of Fiscal Year 2010/11
Ending June 30, 2011
MEETING DATE: August 16, 2011
PREPARED BY: Deputy City Manager
RECOMMENDED ACTION: Receive utility financial reports for the fourth quarter of fiscal year
2010/11 ending June 30, 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 August 16, 2011. Note that the data contained in these
reports is prior to our annual audit and is subject to change.
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:
Jord An Ayers
Deputy City Manager
Bartlam, City Manager
op Public Works Department
Water/Wastewater
IFY 11 Quarterly Update
(Ending June 30, 2011)
City Council Shirtsleeve Session
August 16, 2011
Wastewater Fund
Cash Flow Summary
(Ending June 30, 2011)
M
Sales
Budget
13,527,180
Actuals
12,826,369
% of Budget
I
95%
Development Impact Mitigation Fees
4471750
3,025,135
676%
Other (interest, septic, misc.)
179,460
585,587
326%
Total Revenues
Operating
14,154,390
7,527,960
16,437,091
5,848,334
116%
78%
Capital
2,947,275
2,017,723
68%
Debt Service
41127,840
4,148,805
101%
Cost of Services Payment To General Fund
1,4517480
1,451,480
100%
Total Expenses
16,054,555
13,466,342
84%
Beginning Cash (Operations Only)
2,927,295
Ending Cash (Operations Only)
3,438,689
Days Cash
172
Wastewater
Operating Results
(Ending June 30, 2011)
Personnel
$
31282,310
$
31267,333
100%
Supplies, Materials, Services
$
311387144
$
11688,515
54%
Equipment, Land, Structures
$
65,206
$
40,226
62%
Other Payments
$
1877100
$
56,626
30%
Utilities
$
818,500
$
758,934
93%
Work for Others
$
36,700
$
36,700
100%
Total Operating Expenses
$
71527,960
$
51848,334
78%
Wastewater Funds
Cash Balances
(Ending June 30, 2011)
E
Operating (170)
I
31438,689
Utility Capital / Infrastructure Replacement (171)
5,489,884
Capital Reserve (172)
(Fund used to pay White Slough COP Debt Service)
IMF (173)
(958,875)
2,106, 863
Rate Stabilization Reserve (174)
5009000
Total
15, 321, 065
M
Water Fund
Cash Flow Summary
(Ending June 30, 2011)
Sales
Budget
11,992,640
Actuals
11,940,022
% of Budget
100%
Development Impact Mitigation Fees
2711480
14,803
5%
Other (interest, tap fees, water meters, misc.)
477,860
2,532,899
530%
Total Revenues
in
Operating
127741,980
M
4,796,965
14,487,724
4,366,281
114%
i
91%
Capital
25,149,688
16,209,778
64%
Debt Service
1,507,628
1,507,628
100%
Cost of Services Payment To General Fund
1,060,120
1,060,120
100%
Total Expenses
32,514,401
23,143,807
71%
Beginning Cash (Operations Only)
3,113,513
Ending Cash (Operations Only)
7,625,428
Days Cash
513
Water
Operating Results
(Ending June 30, 2011)
Personnel
$
1,403,580
$
1,307,878
93%
Supplies, Materials, Services
$
757,495
$
693,766
92%
Equipment, Land, Structures
$
81,640
$
43,949
54%
Other Payments
$
1,488,100
$
1,331,424
89%
Utilities
$
721,150
$
643,983
89%
Work for Others
$
345,000
$
345,281
100%
Total Operating Expenses
1 $
4,796,965
1 $
4,366,281
1 91
Water Funds
Cash Balances
(Ending June 30, 2011)
Bad Debt Write Off
(Through June 30, 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
IFY 11 Quarterly Update
(Ending June 30, 2011)
City Council Shirtsleeve Session
August 16, 2011
Electric
Cash Flow Summary
(Ending June 30, 2011)
Net Increase (Decrease)
Beginning Local Cash Balance
FYI FYI
(1,766,044)
12,125,836
Sales Revenues
8,304,366
86.3%
Other Revenues interest, misc
I72,019,230 I62,167,351
425,000 1,827,930
430.1
l Revenues
W
72,444,230
63,995,28188.3%
Purchase Power
43,205,800
37,827,387
87.6%
Non Power
11,782,509
9,577,910
81.3%
Cost of Service
2,856,390
2,856,390
100.0%
In -lieu Transfer to General Fund
6,976,670
6,976,670
100.0%
Capital Projects
4,079,559
1,878,431
46.0%
Debt Service
7,364,772
1 6,902,458
93.7%
Total Expenses
76,265,700
66,019,246
86.6%
Net Chg in Bal Sheet Accts
1 (257,921)
Net Increase (Decrease)
Beginning Local Cash Balance
(3,821,470)
12,125,836
(1,766,044)
12,125,836
Ending Local Cash Balance
8,304,366
10,359,792
Beginning GOR
Net Increase (Decrease) in GOR
11,011,668
11,011,668
1,854,604
Ending GOR
11,011,668
12,866,272
Total Local Cash Balance and GOR
19,316,034
23,226,064
Days of Cash on Hand
1 109
1 148
Electric
Operating Results
(Ending June 30, 2011)
Personnel
$
696839070
$
599079024
88%
Supplies, Materials, Services
$
21279,286
$
11546,233
68%
Equipment, Land, Structures
$
115467010
$
738,905
48%
Other Payments
$
192039203
$
193249141
110%
Utilities
$
70,940
$
61,607
87%
Work for Others
Total Operating Expenses
Is
11,782,509
1 $
9,577,910
81%
Electric Funds
Cash Balances
(Ending June 30, 2011)
E
Operating (160)
I
$ 1,1569063
Utility Outlay Reserve Fund (161)
395009262
Electric Rate Stability Reserve (162)
291419521
Public Benefits Fund (164)
391629001
IMF EU Substation and Transmission (165)
5829452
Solar Surcharge Fund (166)
2279992
Energy Efficiency & CBGP - ARRA (167)
459485
NCPA — General Operating Reserve (GOR)
1298669272
Total
$ 23,226,064
M
Power Supply Costs
(Through June 30, 2011)
Generation
$
35,727,071
$
33,748,737
94.5%
Transmission
$
7,789,578
$
61589,737
84.6%-
4.6%Mana
Management
ement Services
$
1,401,170
$
1,422,436
101.5%
Third Party Revenue
$
2,708,341
$
3,933,523
145.2%
TOTAL
$
42,209,478
1 $
371827,387
89.6%
Power Sales
(Through June 30, 2011)
July
2010
0
0
313
390
August
2010
0
0
245
363
September
2010
0
5
216
247
October
2010
94
76
1
73
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
April
2011
186
169
6
18
May
2011
122
54
23
111
June
2011
34
6
176
254
FY11 Total
2710
2563
981
1456
ECA Revenue
(Through June 30, 2011)
Residential
(172,664)
319,326
884,819
(123,898)
907,583
Small Commercial
(158,469)
294,776
836,053
(123,644)
848,715
Large Commercial/Small Industrial
(46,377)
72,968
202,567
(37,993)
191,166
Industrial
(116,875)
187,946
554,897
(82,815)
543,152
Total ECA Revenue
(494,385)
875,015
21478,336
(368,351)
2,490,615
Billing Statistics
(Through June 30, 2011)
m
Residential
151,352,637
$
28,010,849
$
I
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
$ 7290199230
$
0.1616
Residential
144,256,683
$
24,513,203
$
0.1699
Small Commercial
148,801,071
$
23,739,609
$
0.1595
Large Commercial/Small Industrial
37,177,914
$
5,119,340
$
0.1377
Industrial
90,894,661
$
8,7951199
$
0.0968
TOTAL
421,130,329
$ 6291679351
$
0.1476
Bad Debt Write Off
(Through June 30, 2011)
NCPA "GOR"
(Through June 30, 2011)
GOR levels
➢$11,011,688
(June
30,
2010)
➢$12,866,272
(June
30,
2011)
Interest Income/Budget & TANC Settlement $2,096,993
Scheduling Coordination Balancing Acct $(242,389)
$7,854,604 Increase
r
FY12 Open Position
Notes:
Excessive open position in Q4 will be closed with NCPA MPP/GPP
LEC projected start date is June 1, 2012
11
45,487
0.0%
28,556
0.0%
16,931
0.0%
(185)
45,601
-0.4%
1,039
30,777
3.4%
(1,223)
14,824
-8.3%
2,926
39,850
7.3%
3,351
25,580
13.1%
-0.9%
425
14,270
-3.0%
1.6%
(6)
34,834
0.0%
-206
22,096
200
12,738
(1,990)
33,039
-6.0%
-837
20,969
-4.0%
-1,153
12,070
-9.6%
3,663
35,052
-10.5%
1,811
22,211
-8.2%
1,852
12,841
-14.4%
(3,404)
35,439
-9.6%
(1,884)
21,788
-8.6%
(1,520)
13,651
-11.1%
(623)
32,156
-1.9%
(38)
20,896
-0.2%
(585)
11,260
-5.2%
(219)
34,126
-0.6%
59
22,421
0.3%
(277)
11,705
-2.4%
(18,392)
33,348
-55.2%
(11,606)
20,905
-55.5%
(6,786)
12,443
-54.5%
(18,217)
36,914
-49.3%
(11,739)
24,007
-48.9%
(6,478)
12,907-50.2%
16,636
40,707
-40.9%
9,973
27,209
-36.7%
6,663
13,498
49.4%
FY Total (60,409)
446,553
-13.5%
(33,645)
287,416
-11.7%
(26,763)
159,137
-16.8%
Bal Yr Total 60,409
401,066
-15.19/6
33,645
258,860
-13.0%
26,763
142,206
-18.8%
Notes:
Excessive open position in Q4 will be closed with NCPA MPP/GPP
LEC projected start date is June 1, 2012
11
Electric Utility Accomplishments
Op
• AMR Meter Installations
• Residential 100% complete
• Commercial 25% complete
• Energy Theft Diversion Program - $28,284 (Oct- June 2010)
• Economic Development - New Business/Jobs Rate Incentive
• Customer Programs:
• Solar CY2010 - 410 kW
• Energy Efficiency FY2010/11 - 2.5M kWh (est.)
• Milsoft Distribution System Modeling
• Reynolds Ranch Development - Costco
12