HomeMy WebLinkAboutMinutes - March 12, 2013 SSLODI CITY COUNCIL
SHIRTSLEEVE SESSION
CARNEGIE FORUM, 305 WEST PINE STREET
TUESDAY, MARCH 12, 2013
A. Roll Call by City Clerk
An Informal Informational Meeting ("Shirtsleeve" Session) of the Lodi City Council was held
Tuesday, March 12, 2013, commencing at 7:00 a.m.
Present: Council Member Hansen, Council Member Johnson, and Mayor Pro Tempore
Katzakian
Absent: Council Member Mounce, and Mayor Nakanishi
Also Present: City Manager Bartlam, City Attorney Schwabauer, and Assistant City Clerk
Robison
B. Topic(s)
B-1 Second 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
second 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 Council Member Hansen, Mr. Parlin stated the personnel vacancies have resulted
in some savings and Human Resources has been working to get those positions filled.
In reply to Council Member Johnson, Mr. Parlin responded that it remains difficult to recruit for the
certified operator positions; however, the recruitment for non -licensed positions has improved and
the pool of applicants has increased.
In response to Council Member Johnson, Mr. Parlin stated that the actual cash on hand greatly
exceeded the target due primarily to the capital money from the water treatment plant bond and
the water meter program, which will be spent down on an annual basis.
In response to Council Member Hansen, Public Works Director Wally Sandelin explained that
staff is currently replacing the oldest pipes throughout the city and that will eventually taper off.
Mr. Bartlam further responded that, upon completion of the water meter program and pipe
replacement, the goal would be to focus on rate stabilization and debt retirement.
Mayor Pro Tempore Katzakian questioned if there would be excess funds from the water
treatment plant, to which Mr. Bartlam replied in the affirmative and stated the goal would be to
retire that.
In response to Council Member Hansen, City Attorney Schwabauer stated the only PCE/TCE
plume with active remediation is the Central Plume. Busy Bee will wrap up within six months; the
Southern and Southwestern Plumes will have an inactive remediation schedule soon; and the
Northern Plume will have some activity but more work is necessary before then. Most of the stalls
have been due to regulatory issues and staffing at the state level.
Continued March 12, 2013
City Manager Bartlam stated staff is in the process of reevaluating its liabilities, the current
estimate dates back to the strong movement from the state, and the liability on the books will
most likely drop significantly. Mr. Schwabauer confirmed that the money on the books will be
spent but the City will probably not have to worry about picking up the other $45 million in liability.
In response to Mayor Pro Tempore Katzakian, Management Analyst Rebecca Areida-
Yadav stated the amount in the 'other" category on the water fund cash flow summary is an
overestimation on the water meter payments and the tap fees are ongoing but should drop off
over time. In further response, Mr. Bartlam stated staff monitors the rates to ensure all is on track.
Electric Utility Director Elizabeth Kirkley provided a PowerPoint presentation regarding the
second quarter electric utility department report. Specific topics of discussion included electric
fund operating results, cash balances, power supply costs, power sales, Energy Cost Adjustment
revenue, billing statistics, bad debt write off, general operating reserve, open position, and
accomplishments.
Council Member Hansen questioned the current assessment of the cap and trade program, to
which Ms. Kirkley replied the amount came in lower than anticipated but the trend is going up.
She does not see any unexpected backlash or cost for the City. In further response, Ms. Kirkley
stated the next auction is in May and the City will realize those revenues in this fiscal year.
In response to Council Member Hansen, Mr. Bartlam stated he would like to see the cash on
hand target a little higher as long as it is achievable on a consistent basis.
In reply to Council Member Hansen, Mr. Bartlam stated most of the Electric Utility personnel
vacancies occurred at the end of this quarter.
In response to Council Member Johnson, Ms. Kirkley stated staff is reviewing the public benefits
fund program and will be returning to Council with recommendations. The hope is to include more
efficient street lighting; however, the program has to operate within the cash requirements.
Discussion ensued amongst Council Member Hansen, Mayor Pro Tempore Katzakian,
Ms. Kirkley, and Mr. Bartlam regarding interconnection to the west and east, the possibility of
having both, PG&E's opposition, and potential Cal -ISO decision and upcoming vote.
Rob Lechner, Manager of Rates and Resources, provided information on the Energy Theft
Diversion Program, recent energy efficiency class which was well attended by the key accounts,
the new on-line residential rebate application, and the Youth Energy Summit.
In response to Council Member Hansen, Mr. Lechner explained that the on-line rebate application
is for rebates of less than $300 in value and provides an expedited process.
Council Member Hansen questioned what the five-year plan is regarding clean energy, to which
Ms. Kirkley replied that staff has been working with Northern California Power Agency on bio -
methane options and renewables and will have a future Shirtsleeve Session on the subject.
In response to Mayor Pro Tempore Katzakian, Ms. Kirkley stated that hydro will most likely not
happen.
In response to Mayor Pro Tempore Katzakian, Deputy City Manager Jordan Ayers stated the City
retired one debt this year, the next debt will retire in 2015 with an estimated $3 to $5 million
payment, and the third will retire in 2028.
N
Continued March 12, 2013
C. Comments by Public on Non -Agenda Items
None.
D. Adjournment
No action was taken by the City Council. The meeting was adjourned at 7:45 a.m.
ATTEST:
Jennifer M. Robison
Assistant City Clerk
AGENDA ITEM 6 «'
CITY OF LODI
W COUNCIL COMMUNICATION
TM
AGENDA TITLE: Second Quarter Fiscal Year 2012113 Water, Wastewater and Electric Utility
Department Financial Reports
MEETING DATE: March 12, 2013
PREPARED BY: Deputy City Manager
RECOMMENDED ACTION: Receive utility financial reports for the second quarter of Fiscal Year
2012113 ending December 31, 2012.
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 March 12, 2013.
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:
Jordan Ayers
Deputy City Manager
Bartlam, City Manager
Electric Utility Department
IFY 13 Quarterly Update
(Ending December 31, 2012)
City Council Shirtsleeve Session
March 19, 2013
Electric Fund
Cash Flow Summary
(Ending December 31, 2012)
Net Increase (Decrease)
Bud et
Actuals
% of Budget
Sales Revenues
66,424,170
33,598,830
50.6%
Development Impact Fees
200,000
336
Other Revenues interest, misc
3,829,820
128,073
3.3%
Total Revenues
70,453,990
33,727,239
47.9%
Purchase Power
39,066,260
18,598,184
47.6%
Non Power
10,204,530
3,735,563
36.6%
Capital Projects
1,417,000
445,341
31.4%
Debt Service
8,306,330
6,439,514
77.5%
Cost of Service
2,856,390
1,428,195
50.0%
In -lieu Transfer to General Fund
6,976,670
3,488,335
50.0%
Total Expenses
68,827,180
34,135,132
49.6%
Net Chg in Bal Sheet Accts
1,026,515
Net Increase (Decrease)
1,626,810
(1,434,408)
Beginning Local Cash Balance
8,694,211
8 694 211
Ending Local Cash Balance
10,321,021
7,259,803
Beginning GOR
11,576,432
11,576,432
Net Increase Decrease in GOR
(1,212,250
Ending GOR
11 576,432
10 364182
Total Local Cash Balance and GOR
21,897,453
17,623,985
Days of Cash on Hand
135
116
Days of Cash Target
90
of Target
129%
Electric Fund
Operating Results
(Ending December 31, 2012)
Personnel
$
5,468,750
$
2,490,680
46%
Supplies, Materials, Services
$
2,210,720
$
661,916
30%
Equipment, Land, Structures
$
911,800
$
127,706
14%
Other Payments
$
1,554,480
$
434,158
28%
Utilities
$
58,780
$
21,103
36%
Total Operating Expenses
$
10,204,530
$
3,735,563
37%
Electric Funds
Cash Balances
(Ending December 31, 2012)
M
Operating (160)
$
N
41720,091
Utility Outlay Reserve Fund (161)
$
(492109038)
Electric Rate Stability Reserve (162)
$
2,155,472
Public Benefits Fund (164)
$
31981,959
IMF EU Substation and Transmission (165)
$
653,922
Solar Surcharge Fund (166)
$
(41,603)
NCPA — General Operating Reserve (GOR)
$
10,364,182
Total
$
1796239985
M
Power Supply Costs
(Through December 31, 2012)
Generation
$
31,517,160
$
16,510,540
52.4%
Transmission
$
81949,490
$
31361,704
37.6%
Management Services
$
1,290,670
$
1,082,250
83.9%
Third Party Revenue
$
2,691,060
$
2,356,310
87.6%
Adjustments
TOTAL
$
39,066,260
$
1895989184
47.6%
Power Sales
(Through December 31, 2012)
July
2012
0 OPOP321O363
August
2012
0
0
378
332
September
2012
0
6
247
222
October
2012
66
91
76
54
November
2012
289
360
0
0
December
2012
549
603
0
0
FYI Total
904
1 1060
1022
971
ECA Revenue
(Through December 31, 2012)
Residential
$
976,819
$
413,363
$
563,457
Small Commercial
$
850,736
$
390,157
$
460,580
Large Commercial/Small Industrial
$
254,377
$
131,982
$
122,395
Industrial
$
436,044
$
72,335
$
363,709
Total ECA Revenue
$
2,517,976
$
1,007,836
$
1,510,140
Billing Statistics
(Through December 31, 2012)
Residential
149,173,856 $
25,047,697
$
0.1679
Small Commercial
152,873,821 $
24,310,122
$
0.1590
Large Commercial/Small Industrial
40,144,007 $
6,309,109
$
0.1572
Industrial
92,239,869, $
10,757,242,
$
0.1166
TOTAL
434,431,5531 $
66,424,170
$
0.1529
Residential
83,737,480 $
13,480,756
$
0.1610
Small Commercial
81,006,718 $
12,430,575
$
0.1535
Large Commercial/Small Industrial
24,243,721 $
3,350,474
$
0.1382
Industrial
44 830 039 $
4,337,025,
$
0.0967
TOTAL
233,817,958 $
33,598,8301
$
0.1437
Bad Debt Write Off
(Through December 31, 2012)
NCPA General Operating Reserve (GOR)
(Through December 31, 2012)
GOR Balance
➢$11,576,432 (Jun 30, 2012)
➢$10,364,182 (Dec 31, 2012)
Interest Income
Settlement
LEC Cost Overrun
Sched. Coord. Balancing Acct
MPP Security Account
• MPP Security Account Balance - $1,530,766
• GPP Security Account Balance - $ 549,010
Total Sec Acct Balance $2,079,776
$
16,479
($
876)
($
6877604)
($
260,249)
($
280,000)
$1,212,250 Decrease
W
FY13
FY13 Open Position
11
Electric Utility Accomplishments
op
• System Maintenance Program
• Transmission Cost Containment
• Energy Theft Diversion Program
• Key Accounts Energy Efficiency Class
• Online Residential Rebate Application
• Youth Energy Summit
12
<�Foop
Public Works Department
Water/Wastewater
IFY 13 Quarterly Update
(Ending December 31, 2012)
City Council Shirtsleeve Session
March 12, 2013
Wastewater Fund
Cash Flow Summary
(Ending December 31, 2012)
Sales
Budget
13,873,500
Actuals
6,608,224
% of Budget
48%
Development Impact Mitigation Fees (wastewater & storm)
82,740
(1,562)
(2%)
Other (interest, septic, misc.)
279,040
86,675
31%
Total Revenues
Operating
14,235,280
6,395,240
6,693,337
2,543,254
47%
40%
Capital
2,679,657
809,899
30%
Debt Service
4,128,650
665,807
16%
Cost of Services Payment To General Fund
1,451,480
725,740
50%
Total Expenses
14,655,027
4,744,660
32%
Beginning Cash (Operations Only)
2,707,595
Ending Cash (Operations Only)
4,444,825
Days Cash (For Operations)
250
Days Cash Target
90
% of Target
278%
2
Wastewater
Operating Results
(Ending December 31, 2012)
Personnel
$
3,239,330
$
1,414,607
44%
Supplies, Materials, Services
$
2,049,890
$
580,755
28%
Equipment, Land, Structures
$
1019000
$
199576
19%
Other Payments
$
2059120
$
1939569
94%
Utilities
$
7079400
$
3349747
47%
Work for Others
$
92,500
$
-
0%
Total Operating Expenses
$
6,395,240
1 $
295439254
40%
Wastewater Funds
Cash Balances
(Ending December 31, 2012)
M
Operating (170)
I
41444,825
Utility Capital / Infrastructure Replacement (171)
61979,444
Capital Reserve (172)
(Fund used to pay White Slough COP Debt Service)
Wastewater IMF (173)
(1,454,406)
669,091
Rate Stabilization Reserve (174)
500,000
Storm Drain IMF (175)
689,245
Total
12,503,348
Water Fund
Cash Flow Summary
(Ending December 31, 2012)
Sales
Budget
12,419,950
Actuals
6,419,411
% of Budget
52%
Development Impact Mitigation Fees
19,670
2,526
13%
Other (interest, tap fees, water meters, misc.)
2,376,940
625,662
26%
Total Revenues
im
Operating
14,816,560
6,091,510
7,047,599
2,818,104
48%
i
46%
Capital
13,854,641
7,377,190
53%
Debt Service
2,968,610
909,037
31%
Cost of Services Payment To General Fund
1,060,120
530,060
50%
Total Expenses
23,974,881
11,634,391
49%
Beginning Cash (Operations Only)
12,517,185
Ending Cash (Operations Only)
13,508,283
Days Cash (For Operations)
742
Days Cash Target
90
% of Target
824%
Water
Operating Results
(Ending December 31, 2012)
Personnel
$
2,236,450
$
1,014,981
45%
Supplies, Materials, Services
$
1,418,500
$
434,431
31%
Equipment, Land, Structures
$
48,000
$
33,059
69%
Other Payments
$
1,351,280
$
946,612
70%
Utilities
$
731,280
$
389,021
53%
Work for Others
$
306,000
$
-
0%
Total Operating Expenses
$
6,091,510
$
2,818,104
46%
Water Funds
Cash Balances
(Ending December 31, 2012)
Bad Debt Write Off
(Through December 31, 2012)
Water / Wastewater Utility
Activities
Operational
■ Water Distribution
■ Water Production
■ Collection System
■ Wastewater Treatment
Regulatory
• SSo's
■ Discharge Violations
■ Monitoring and Reporting
01