HomeMy WebLinkAboutMinutes - October 30, 2012 SSLODI CITY COUNCIL
SHIRTSLEEVE SESSION
CARNEGIE FORUM, 305 WEST PINE STREET
TUESDAY, OCTOBER 30, 2012
A. Roll Call by City Clerk
An Informal Informational Meeting ("Shirtsleeve" Session) of the Lodi City Council was held
Tuesday, October 30, 2012, commencing at 7:05 a.m.
Present: Council Member Hansen, Mayor Pro Tempore Nakanishi, and Mayor Mounce
Absent: Council Member Johnson, and Council Member Katzakian
Also Present: City Manager Bartlam, City Attorney Schwabauer, and City Clerk Johl
B. Topic(s)
B-1 First Quarter Fiscal Year 2012/13 Water, Wastewater, and Electric Utility Department
Financial Reports (CM)
City Manager Rad Bartlam provided a brief introduction to the subject matter of the quarterly
updates from the water, wastewater, and electric utilities.
Deputy Public Works Director Larry Parlin provided a PowerPoint presentation regarding the first
quarter water and wastewater utility department report. Specific topics of discussion included
water and wastewater cash flow summary, operating results, cash balances, bad debt write off,
and activities.
In response to Mayor Mounce, Deputy City Manager Jordan Ayers confirmed that bad debt write
off has decreased due partially to the recent billing collection adjustments.
In response to Council Member Hansen, Mr. Parlin stated there were two instances in which the
Lodi Energy Center utilized more than its daily water allowance for testing purposes unbeknownst
to the City. Mr. Parlin stated that, while the City will have no problem meeting its current
contractual obligations for water, the City and the Lodi Energy Center should look at additional
storage options in the event that the Lodi Energy Center has a greater need for water in the
future. Mr. Bartlam stated the new plant testing at Lodi Energy Center requiring more than the
daily allowance is not anticipated to be a regular occurrence.
In response to Mayor Pro Tempore Nakanishi, Mr. Parlin stated currently after the water is treated
one-third is utilized by the farmers, one-third is utilized by the Lodi Energy Center, and the
remaining one-third is sent out to the Delta.
In response to Council Member Hansen, Mr. Parlin confirmed it may be prudent to eliminate, if
possible, future discharge to the river and the Delta to alleviate the City from regulatory discharge
obligations.
In response to Mayor Pro Tempore Nakanishi, Mr. Parlin stated that, while he is not aware of any
utility in San Joaquin County that is currently storing wastewater, Modesto in Stanislaus County
is storing wastewater.
In response to Council Member Hansen, Mr. Parlin stated there has been only one minor sewage
system overflow and overall they are doing very well on spills.
In response to Mayor Pro Tempore Nakanishi, Mr. Bartlam stated staff is researching the citizen
Continued October 30, 2012
correspondence received regarding San Mateo utility rates and will respond accordingly. Mayor
Mounce suggested releasing comparative utility rate information, as well as an Energy Cost
Adjustment (ECA) update, for public awareness purposes.
Electric Utility Director Elizabeth Kirkley provided a PowerPoint presentation regarding the first
quarter electric utility department report. Specific topics of discussion included electric fund
operating results, cash balances, power supply costs, power sales, ECA revenue, billing
statistics, bad debt write off, general operating reserve (GOR), open position, and
accomplishments.
In response to Mayor Mounce, Ms. Kirkley and Mr. Ayers stated the decrease in the cash on
hand amount is due to a debt service payment and a requirement to keep funds in specific
securities.
In response to Mayor Pro Tempore Nakanishi, Mr. Ayers stated the debt service is approximately
12% of the total expenses and does fluctuate slightly.
In response to Mayor Mounce, Ms. Kirkley stated a monthly audit is conducted on the Northern
California Power Agency (NCPA) billing to ensure proper charges have been assessed to the
City.
In response to Mayor Mounce, Ms. Kirkley and Mr. Bartlam stated there have not been any
surprises per se with respect to the new Independent System Operator (ISO) billing as it has
gone up as expected. Mayor Mounce requested a comparison of related costs for the City before
and after the new ISO billing went into effect.
A brief discussion ensued between Mayor Mounce, Council Member Hansen, and Mr. Bartlam
regarding efforts to mitigate tense interactions between upset utility customers and employees at
the Finance Department.
In response to Mayor Mounce, Ms. Kirkley confirmed that the Lodi Energy Center cost overrun
amount is shared by all project participants.
Mayor Pro Tempore Nakanishi requested information regarding how much money is in the GOR,
where NCPA invests the GOR, and at what interest rate.
In response to Mayor Mounce, Ms. Kirkley stated the ISO tariff amount is going up, as a result the
utility is having to put more away, and she will provide the total retainer amount as requested.
In response to Mayor Mounce, Mr. Bartlam confirmed that the $1.8 million in the restricted Market
Power Purchase security account for future power purchases is also treated as a reserve amount
in the event of a participant payment default.
In response to Council Member Hansen, Ms. Kirkley stated the open position target amount is an
educated guess that varies based upon market conditions and the Risk Oversight Committee's
policy and the current 15% is a good place to be right now.
In response to Council Member Hansen, Ms. Kirkley stated the updates to the Electric Utility
Department's website were done in-house with current staff in an attempt to make the website
more user-friendly.
In response to Mayor Pro Tempore Nakanishi, Mr. Bartlam stated he will research and provide
information regarding the personnel costs for the City's utilities as requested.
N
Continued October 30, 2012
In response to Ed Miller, Mr. Bartlam stated security -related discussions for storm water are
ongoing between the State and local governments and implementation remains a concern.
C. Comments by Public on Non -Agenda Items
None.
D. Adjournment
No action was taken by the City Council. The meeting was adjourned at 8:00 a.m.
ATTEST:
Randi Johl
City Clerk
AGENDA ITEM
A% CITY OF LODI
COUNCIL COMMUNICATION
TM
AGENDA TITLE: First Quarter Fiscal Year 2012/13 Water, Wastewater and Electric Utility
Department Financial Reports
MEETING DATE: October 30, 2012
PREPARED BY: Deputy City Manager
RECOMMENDED ACTION: Receive utility financial reports for the first quarter of Fiscal Year
2012/13 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 October 30, 2012.
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.
APPROVED:
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Jor n Ayers
Deputy City Manager
Bartlam, City