HomeMy WebLinkAboutMinutes - November 1, 2011 SSLODI CITY COUNCIL
SHIRTSLEEVE SESSION
CARNEGIE FORUM, 305 WEST PINE STREET
TUESDAY, NOVEMBER 1, 2011
A. Roll Call by City Clerk
An Informal Informational Meeting ("Shirtsleeve" Session) of the Lodi City Council was held
Tuesday, November 1, 2011, commencing at 7:00 a.m.
Present: Council Member Hansen, Council Member Katzakian, Council Member Nakanishi,
Mayor Pro Tempore Mounce, and Mayor Johnson
Absent: None
Also Present: City Manager Bartlam, City Attorney Schwabauer, and City Clerk Johl
B. Topic(s)
B-1 First Quarter Fiscal Year 2011/12 Water, Wastewater, and Electric Utility Department
Financial Reports (CM)
City Manager Rad Bartlam briefly introduced the subject matter of the quarterly updates.
Deputy Public Works Director Charlie Swimley provided a PowerPoint presentation regarding the
water and wastewater fiscal year 2012 quarterly update. Specific topics of discussion included
the water and wastewater cash flow summary, operating results, cash balances, bad debt write
off, and accomplishments.
In response to Mayor Johnson, Mr. Swimley stated the difference in cash days in both the water
and wastewater funds is due to starting with a larger amount of money in the water fund, which
will be spent in the next phase of the water meter program.
In response to Council Member Hansen, Mr. Bartlam stated the cash on hand goal for all three
utilities is 25% of the operating reserve and 181 days is approximately 50%.
In response to Mayor Pro Tempore Mounce, Deputy City Manager Jordan Ayers stated the debt
service includes the County's process associated with accruing interest in one year and reversing
in the next year, which also includes the cash to accrual numbers.
In response to Mayor Johnson, Mr. Swimley stated the sanitary sewer overflow spills were
reduced because staff set a goal of zero spills and intentionally focused on a clean strategy in
targeted areas.
In response to Council Member Nakanishi, Mr. Swimley stated the City has an every other year
infrastructure replacement program of $2 million, which replaces approximately two to three miles
of line.
In response to Council Member Hansen, Mr. Swimley stated staff targets the oldest pipes first for
replacement including those in easements and alleys. Mr. Swimley stated in some cases the
pipe may be increased by a small amount due to the new material of the pipe, which is one
continuous liner without joints and can handle more water.
In response to Council Member Hansen, Mr. Swimley stated the new system is much less prone
to leakage.
Continued November 1, 2011
In response to Council Member Nakanishi, Mr. Swimley stated the City does cross train in water
and wastewater and rotate staff. He stated water and wastewater share about 26 staff members
and the treatment plant has about 20 staff members.
In response to Mayor Pro Tempore Mounce, Mr. Swimley stated the water line on Flora and
Stockton Street was replaced during the improvements but he is not sure about the water meters
being moved from the back to the front.
Electric Utility Director Elizabeth Kirkley provided a PowerPoint presentation regarding the electric
utility fiscal year 2012 quarterly update. Specific topics of discussion included cash flow summary,
operating results, cash balances, power supply costs, power sales, energy cost adjustment (ECA)
revenue, billing statistics, bad debt write off, Northern California Power Agency general operating
reserve, open position, and accomplishments.
In response to Mayor Johnson, Ms. Kirkley stated General Mills runs its facility when it is making
puffed cereal based on when gas is low and staff is working with General Mills to establish
communication regarding notifying the City when the plant will be on or off line.
In response to Council Member Hansen, Ms. Kirkley stated filling the existing two vacancies that
will work on the substations has been a challenge because of the lack of qualified applicants in
the industry at the current time. She stated staff is doing some cross training for emergency
situations but there is still a need for qualified applicants and a good trainer.
In response to Mayor Pro Tempore Mounce, Mr. Bartlam stated the City is using contract staff in
the interim while the vacant positions are being recruited for.
In response to Mayor Johnson, Mr. Bartlam stated contract staff can only be used for a temporary
period due to CalPers requirements on amount of hours that can be worked and there is a need
for permanent employees to provide consistency with these positions.
In response to Council Member Nakanishi, Ms. Kirkley stated she assumes that other agencies
including PG&E and SMUD are having similar challenges in recruiting for these types of
positions.
In response to Council Member Hansen, Ms. Kirkley stated a cooling degree day is based on a
formula related to the monthly temperature based on normal averages, geographical area, and
what is actually needed to cool a house or business.
In response to Mayor Pro Tempore Mounce, Ms. Kirkley stated it is difficult to compare rates for
utilities because the rate may be comprised of different elements including the base rate, user
tax, ECA, tiers, and rate class. Mr. Bartlam stated the most accurate comparison is done when a
utility bill is provided and analyzed on its own for the various components.
Council Member Nakanishi requested information regarding demographics for bad debt write off
for the utilities.
In response to Mayor Johnson, Ms. Kirkley confirmed that the meter reading complaints initially
received with the new system have diminished greatly.
In response to Mayor Pro Tempore Mounce, Ms. Kirkley confirmed that the street lights include
eight separate grids throughout the City.
In response to Council Member Hansen, Ms. Kirkley stated that, with respect to street light and
pole improvements, the additional equipment is replaced only when it is necessary.
N
Continued November 1, 2011
In response to Council Member Hansen and Mayor Pro Tempore Mounce, Mr. Ayers stated the
Energy Efficiency Community Block Grant program is a one-time program unless it is
reauthorized by the federal government. Ms. Kirkley confirmed the electric trash receptacles
appear to be working fine.
In response to Council Member Nakanishi, Ms. Kirkley provided a brief overview of the history
and application of the energy cost adjustment.
In response to Council Member Hansen, Ms. Kirkley stated staff will be presenting information
regarding the power supply to the west at an upcoming Shirtsleeve Session.
C. Comments by Public on Non -Agenda Items
None.
D. Adjournment
No action was taken by the City Council. The meeting was adjourned at 8:02 a.m.
ATTEST:
Randi Johl
City Clerk
AGENDA ITEM 130*1
&'a CITY OF LODI
,. COUNCIL COMMUNICATION
TM
AGENDA TITLE: First Quarter Fiscal Year 2011/12 Water, Wastewater and Electric Utility
Department Financial Reports
MEETING DATE: November 1, 2011
PREPARED BY: Deputy City Manager
RECOMMENDED ACTION: Receive utility financial reports for the first quarter of Fiscal Year
2011/12 ending September 30.
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 November 1, 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.
FUNDING AVAILABLE: Not applicable.
Jordan Ayers
Deputy City Manager
APPROVED: it 7-T-
Konradt Bartlam, City Manager
op Public Works Department
Water/Wastewater
IFY 12 Quarterly Update
(Ending September 30, 2011)
City Council Shirtsleeve Session
November 1, 2011
Wastewater Fund
Cash Flow Summary
(Ending September 30, 2011)
Sales
Budget
13,308,990
Actuals
3,138,210
% of Budget
24%
Development Impact Mitigation Fees
(wastewater & storm)
74,220
83,761
113%
Other (interest, septic, misc.)
212,540
30,766
14%
Total Revenues
Operating
13,595,750
6,864,750
3,252,7237
1,283,067
24%
19%
Capital
9,904,005
1,372,982
14%
Debt Service
4,127,670
680,217
16%
Cost of Services Payment To General Fund
1,451,480
362,870
25%
Total Expenses
22,347,905
3,699,136
17%
Beginning Cash (Operations Only)
3,415,273
Ending Cash (Operations Only)
3,269,870
Days Cash (For Operations)
181
2
Wastewater
Operating Results
(Ending September 30, 2011)
Personnel
$
393039560
$
7059895
21%
Supplies, Materials, Services
$
213759740
$
267,962
11%
Equipment, Land, Structures
$
106,000
$
20,496
19%
Other Payments
$
2029100
$
104,445
52%
Utilities
$
8579350
$
184,269
21%
Work for Others
$
209000
$
-
0%
Total Operating Expenses
$
658649750
$
19283,067
19%
Wastewater Funds
Cash Balances
(Ending September 30, 2011)
M
Operating (170)
I
31269,870
Utility Capital / Infrastructure Replacement (171)
5,369,974
Capital Reserve (172)
(Fund used to pay White Slough COP Debt Service)
Wastewater IMF (173)
(31105,033)
2,122, 562
Rate Stabilization Reserve (174)
500,000
Storm Drain IMF (175)
1,982,022
Total
14,098,683
M
Water Fund
Cash Flow Summary
(Ending September 30, 2011)
Sales
Budget
12,073,210
Actuals
3,293,611
% of Budget
27%
Development Impact Mitigation Fees
133,180
3,307
2%
Other (interest, tap fees, water meters, misc.)
1,645,950
114,298
7%
Total Revenues
in
Operating
13,852,340
M
4,423,700
3,411,216
M
1,247,556
25%
i
28%
Capital
37,832,365
5,961,274
16%
Debt Service
2,966,856
(182,655)
(6%)
Cost of Services Payment To General Fund
1,060,120
265,030
25%
Total Expenses
46,283,041
7,291,205
16%
Beginning Cash (Operations Only)
7,619,063
Ending Cash (Operations Only)
9,682,001
Days Cash (For Operations)
584
Water
Operating Results
(Ending September 30, 2011)
Personnel
$
1,459,900
$
307,294
21%
Supplies, Materials, Services
$
577,510
$
98,502
17%
Equipment, Land, Structures
$
47,000
$
-
0%
Other Payments
$
1,303,340
$
626,307
48%
Utilities
$
720,950
$
215,453
Work for Others
$
315,000
$
-
J28%
Total Operating Expenses
$
4,423,700
$
1,247,556
Water Funds
Cash Balances
(Ending September 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 12 Quarterly Update
(Ending September 30, 2011)
City Council Shirtsleeve Session
November 1, 2011
Electric
Cash Flow Summary
(Ending September 30, 2011)
"M
FY12 FY12
(1,605,265)
10,334,750
Sales Revenues
66,772,590 18,927,919
28.3%
Other Revenues interest, misc
513,040 160,020
31.2%
Total Revenues
67,285,630
19,087,939
28.4%
Purchase Power
40,518,060
10,097,489
24.9%
Non Power
10,217,101
1,973,616
19.3%
Cost of Service
2,856,390
714,099
25.0%
In -lieu Transfer to General Fund
6,976,670
1,744,170
25.0%
Capital Projects
3,833,137
267,321
7.0%
Debt Service
7,228,470
3,271,600
45.3%
Total Expenses
71,629,828
18,068,295
25.2%
Net Chg in Bal Sheet Accts
2,624,909
Net Increase (Decrease)
Beginning Local Cash Balance
(4,344,198)
10,334,750
(1,605,265)
10,334,750
Ending Local Cash Balance
5 990 552
8 729 485
Beginning OR
Net Increase Decrease in GOR
12,867,525
12,867,525
11,757
Ending GOR
12,867,525
12,879,282
Total Local Cash Balance and GOR
18,858,077
1
21,608,767
1
Das of Cash on Hand
114
134
Electric
Operating Results
(Ending September 30, 2011)
Personnel
$
518249120
$
11189,178
20%
Supplies, Materials, Services
$
11974,776
$
406,224
21%
Equipment, Land, Structures
$
11120,985
$
211,687
19%
Other Payments
$
192439800
$
155,114
12%
Utilities
$
53,420
$
11,415
21%
Work for Others
Total Operating Expenses
Is
10,217,101
Is
11973,618
1 19%
Electric Funds
Cash Balances
(Ending September 30, 2011)
E
Operating (160)
I
$ 291389182
Utility Outlay Reserve Fund (161)
8029704
Electric Rate Stability Reserve (162)
291449398
Public Benefits Fund (164)
392159628
IMF EU Substation and Transmission (165)
5359813
Solar Surcharge Fund (166)
1129415
Energy Efficiency & CBGP - ARRA (167)
59175
NCPA — General Operating Reserve (GOR)
129879,282
Total
$ 21,608,767
M
Power Supply Costs
(Through September 30, 2011)
Generation
$
32, 220, 862
$
8,118, 922
25.2%
Transmission
$
79212,913
$
11948,323
27.0%
Management Services
$
2,451,315
$
377,009
15.4%
Third Party Revenue
$
(1,367,030)
$
(346,765)
25.4%
TOTAL
$ 40,518,060
1 $10,097,489
1 24.9%
Power Sales
(Through September 30, 2011)
July
2011
0
0
311
329
August
2011
0
0
319
332
September
2011
0
5
304
222
FY12 Total
0
5
934
883
ECA Revenue
(Through September 30, 2011)
M
Residential
I
$ (1125187)
Small Commercial
(1105731)
Large Commercial/Small Industrial
(32,491)
Industrial
(67,294)
Total ECA Revenue
$ (322,703)
Billing Statistics
(Through September 30, 2011)
M
Residential
146,607,311
$
26,462,750
$
I
0.1805
Small Commercial
153,017,229
$
25,758,030
$
0.1683
Large Commercial/Small Industrial
371160,814
$
5,204,260
$
0.1400
Industrial
92,546,511
$
9,347,550
$
0.1010
TOTAL
429,331,865
$ 66,772,590
$
0.1555
Residential
45,872,344
$
717353166
$
0.1686
Small Commercial
43,168,617
$
7,065,086
$
0.1637
Large Commercial/Small Industrial
121105,096
$
11728,422
$
0.1428
Industrial
24,338,831
$
2,399,245
$
0.0986
TOTAL
125,484,888
$
18,927,919
$
0.1508
Bad Debt Write Off
(Through September 30, 2011)
NCPA "GOR"
(Through September 30, 2011)
GOR levels
➢$12,867,525
(Jun
30, 2011)
➢$12,879,282
(Sep
30, 2011)
Interest Income $11,757
$11,757 Increase
r
FY12 Open Position
11
45,487
0.0%
16,931
0.0%
28,556
0
0.0%
45,601
0.0%
14,824
0.0%
30,777
0.0%
39,850
0.0%
14,270
0.0%
0.0%
25,580
0.0%
0.0%
34,834
0.0%
12,738
22,096
(2,316)
33,039
-7.0%
-1,178
12,070
-9.8%
-1,138
20,969
-5.4%
(4,690)
35,052
-13.4%
(2,612)
12,841
-20.3%
(2,078)
22,211
-9.4%
(3,895)
35,439
-11.0%
(2,198)
13,651
-16.1%
(1,697)
21,788
-7.8%
64
32,156
0.2%
381
11,260
3.4%
(317)
20,896
-1.5%
(299)
34,126
-0.9%
(15)
11,705
-0.1%
(284)
22,421
-1.3%
(8,113)
33,348
-24.3%
(3,777)
12,443
-30.4%
(4,336)
20,905
-20.7%
(8,386)
36,914
-22.7%
(4,117)
12,907
-31.9%
(4,269)
24,007
-17.8%
(8,400)
40,707
-20.6%
(3,403)
13,498
-25.2%
(4,997)
27,209
-18.4%
FY Total (36,035)
446,553
°°
(16,920)
159,137
-10.6%
(19,115)
287,416
-6.7%
Bal Yr Total (36,035)
401,066
-9.0°
(16,920)l
142,206
r -11.9%
(19,115)
258,860
-7.4%
11
Electric Utility Accomplishments
Op
• Underground Maintenance Program
• Grid 57: 90%
• Grid 56: 40%
• Automatic Meter Reading Project
• Residential: complete
• Commercial: 90%
• Streetlight Grounding & Fusing Project
• Grid A: 99%
• Grid B: started
• Pole Inspection & Testing
• Osmose contract executed/work commenced September
• EECBG Funds expended
12