HomeMy WebLinkAboutMinutes - September 24, 2013 SSLODI CITY COUNCIL
SHIRTSLEEVE SESSION
CARNEGIE FORUM, 305 WEST PINE STREET
TUESDAY, SEPTEMBER 24, 2013
A. Roll Call by City Clerk
An Informal Informational Meeting ("Shirtsleeve" Session) of the Lodi City Council was held
Tuesday, September 24, 2013, commencing at 7:00 a.m.
Present: Council Member Hansen, Council Member Johnson, Council Member Mounce, Mayor
Pro Tempore Katzakian, and Mayor Nakanishi
Absent: None
Also Present: City Manager Bartlam, City Attorney Schwabauer, and City Clerk Johl-Olson
B. Topic(s)
B-1 Receive Utility Financial Reports for the Fourth Quarter of Fiscal Year 2012/13 Ending
June 30. 2013 (CM)
City Manager Rad Bartlam briefly introduced the subject matter of the fourth quarter utility
financial reports.
Deputy Public Works Director Larry Parlin provided a PowerPoint presentation regarding the
Public Works quarterly update ending June 30, 2013. Specific topics of discussion included water
and wastewater cash flow summary, operating results, cash balances, bad debt write off,
operational activities, and regulatory activities.
In response to Council Member Johnson, Mr. Parlin stated there was a capital cost savings
because projects for main lining and at White Slough did not need to be completed immediately.
In response to Mayor Pro Tempore Katzakian, Mr. Bartlam stated the City Council will be
receiving a PCE/TCE status update next week.
In response to Council Member Johnson, Mr. Parlin stated the leaks associated with the water
meter project are stable although Teichert will have to do some follow-up repair work at its own
expense.
In response to Council Member Johnson, Mr. Parlin stated approximately $20,000 to $30,000 is
spent on public education and outreach efforts and staff will continue to participate at the Farmers
Market and similar events to bring water conservation awareness.
In response to Council Member Hansen, Mr. Parlin confirmed that the permit is issued by the
State Water Resources Control Board and it is an unfunded mandate.
In response to Council Member Johnson, Mr. Parlin stated the permit process involves data
collection by the State, analyzing the data, and a decision as to whether or not the outreach
efforts are sufficient or more needs to be done.
In response to Council Member Hansen, Mr. Parlin stated the permit is administratively issued
and is good for five years.
In response to Council Member Johnson, Mr. Parlin stated there are no problems with Flag City.
In response to Council Member Hansen, Mr. Parlin provided an overview of the system at the
treatment plant by way of controls, security, and alarm systems for operations that are fully
technical and electronic -based versus manual.
In response to Council Member Hansen, Mr. Parlin stated one full-time contracted temporary
position will be eliminated in the near future based on the original plan.
In response to Council Member Mounce, Mr. Parlin stated the call-in procedure for the new plant
is similar to other existing facilities and overtime may or may not be included based on the
employee that responds. Council Member Mounce asked that additional information be provided
in the next quarterly update regarding the details of the cash on hand numbers.
In response to Mayor Nakanishi, Mr. Parlin stated the City's cash on hand amount is better than
most and he will supply the access information about the new treatment plant to the City Council
through the City Manager.
In response to Council Member Hansen, Mr. Parlin stated the water meters should be fully
automated by the end of next year.
Electric Utility Director Elizabeth Kirkley provided a PowerPoint presentation regarding the
Electric Utility quarterly update ending June 30, 2013. Specific topics of discussion included cash
flow summary, reserve policy, cash balances, power sales, Energy Cost Adjustment (ECA)
revenue, operating results, power supply costs, billing statistics, bad debt write off, open position,
and activities.
In response to Council Member Johnson, Mr. Bartlam stated almost every dollar of the public
benefit program is planned for and will be spent on projects including capital infrastructure, street
light retrofitting, and work at Hutchins Street Square.
In response to Council Member Hansen, Mr. Bartlam and Ms. Kirkley stated energy efficiency
improvements require both tenant and landlord consent even if they are being paid for by the
tenant.
In response to Mayor Nakanishi, Ms. Kirkley stated she will forward the Northern California Power
Agency annual report card, which sets forth the financial health of its member cities as requested.
In response to Council Member Hansen, Ms. Kirkley stated the City Council will receive an
update next week regarding the City's current 20% amount for greenhouse emissions and its
ongoing effort to achieve the 33% by 2020 as required by law.
In response to Council Member Hansen, Ms. Kirkley stated May 2017 is the target in-service date
for the 230 kV interconnection project.
In response to Council Member Hansen, City Attorney Schwabauer provided a brief overview of
the process related to the grievance filed in response to an Electric Utility recruitment of certain
positions with reclassified salaries.
In response to Mayor Nakanishi, Ms. Kirkley confirmed that the ECA was implemented in 2007, is
the most efficient alternative to monthly rate adjustments, and results in a more favorable view
from the rating agencies.
In response to Council Member Mounce, Mr. Bartlam stated the Lakewood resident matter will be
discussed at the October 29 Shirtsleeve Session and the City received a health and wellness
grant for $5,000 from the Healthy Eating Active Living Campaign related to the League of
California Cities.
None.
Comments by Public on Non -Agenda Items
Adjournment
No action was taken by the City Council. The meeting was adjourned at 7:55 a.m.
ATTEST:
Randi Johl-Olson
City Clerk
AGENDA ITEM P�
A% CITY OF LODI
COUNCIL COMMUNICATION
TM
AGENDA TITLE: Receive Utility Financial Reports for the Fourth Quarter of Fiscal Year 2012/13
Ending June 30, 2013
MEETING DATE: September 24, 2013
PREPARED BY: Deputy City Manager
RECOMMENDED ACTION: Receive utility financial reports for the fourth quarter of the fiscal
year 2012/13 ending June 30, 2013.
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 September 24, 2013. 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.
Jordan Ayers
Deputy City Manager
APPROVED:
Electric Utility Department
IFY 13 Quarterly Update
(Ending June 30, 2013)
City Council Shirtsleeve Session
September 24, 2013
Electric Fund
Cash Flow Summary
(Ending June 30, 2013)
Net Increase (Decrease)
Bud et
Actuals
% of Budg et
Sales Revenues
66,424,170
63,229,644
95%
Development Impact Fees
200,000
6,226
3%
Other Revenues interest, misc
3,829,820
2,796,121
73%
Total Revenues
70,453,990
66,031,991
94%
Purchase Power
39,066,260
38,118,432
98%
Non Power
10,204,530
9,321,942
91%
Capital Projects
1,417,000
1,291,454
91%
Debt Service
8,306,330
8,721,831
105%
Cost of Service
2,856,390
2,856,390
100%
In -lieu Transfer to General Fund
6,976,670
6,976,670
100%
Total Expenses
68,827,180
67,286,719
98%
Net Chg in Bal Sheet Accts
5,796,328
Net Increase (Decrease)
1,626,810
4,541,601
Beginning Local Cash Balance
8,694,211
8 694211
Ending Local Cash Balance
10,321,021
13,235,812
GOR Balance
8,761,966
Total Reserve Balance
21,997,778
Reserve Policy Target
24,400,000
% of Target
90%
2
Electric Utility Reserve Policy
(Ending June 30, 2013)
Operating Reserve
90 Das Cash
$
17,200,00
$
13,235,812
Capital Reserve
Largest Distribution System Contingency
$
1,000,000
NCPA General Operating Reserve
NCPA Identified Items
$
6,200,000
$
5,270,130
NCPA MPP/GPP Balance
MPP/GPP Securit Commitments
$
3 491 836
Total Target
$
24,400,000
$
21,997,778
Electric Funds
Cash Balances
(Ending June 30, 2013)
M
Operating (160)
$
0
31906,303
Utility Outlay Reserve Fund (161)
$
476,866
Electric Rate Stability Reserve (162)
$
21157,205
Public Benefits Fund (164)
$
41113,940
IMF EU Substation and Transmission (165)
$
659,812
Solar Surcharge Fund (166)
$
(93,890)
Environmental Compliance (168)
$
21015,576
NCPA — General Operating Reserve (GOR)
$
81761,966
Total
$
21,997,778
El
Power Sales
(Ending June 30, 2013)
July
2012
0
0
321
363
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
January
2013
644
595
0
0
February
2013
455
407
0
0
March
2013
221
324
0
0
April
2013
77
190
46
17
May
2013
11
60
135
102
June
2013
0
7
281
230
FY13 Total
2312
2643
1484
1 1320
ECA Revenue
(Ending June 30, 2013)
Residential
$
(976,819)
$
413,363
$
762,558
$
165,900
$
365,001
Small Commercial
$
(850,736)
$
390,157
$
743,678
$
190,530
$
473,629
Large Commercial/Small Industrial
$
(254,377)
$
131,982
$
232,403
$
54 650
$
164,658
Industrial
$
(436,044$
72,335
$
198,017
$
503,273
$
337,580
Total ECA Revenue
$
2,517,976
$
1,007,836
$
1,936,656
$
914,353
$
1,340,869
C�
Electric Fund
Operating Results
(Ending June 30, 2013)
Personnel
$
5,468,750
$
5,200,232
95%
Supplies, Materials Services
$
2,210,720
$
1,566,132
71%
Equipment, Land, Structures
$
911,800
$
1,015,667
111%
Other Payments
$
1,554,480
$
1,492,004
96%
Utilities
$
58,780
$
47,907
82%
Total Operating Expenses
$
10,204,530
$
9,321,942
91%
Power Supply Costs
(Ending June 30, 2013)
Generation
$
31,517,160
$
35,793,446
114%
Transmission
$
81949,490
$
61913,169
77%
Management Services
$
172907670
$
11401,391
109%
Third Party Revenue
$
2,691,060
$
519891574
223%
Adjustments
TOTAL
$
39,0669260
$
389118,432
98%
Billing Statistics
(Ending June 30, 2013)
Residential
149,173y856 $
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$
66,424,1701$
0.1337
0.1529
Residential
151,814,83
$
25 377 977
$
0.1672
Small Commercial
152,534,226
$
23,677,716
$
0.1552
Large Commercial/Small Industrial
46,379,962
$
6,198,971
$
0.1337
Industrial
85,093,443,
$
7,974,979,
$
0.0937
TOTAL
435,822,4651
$
63 229,644
$
0.1451
Bad Debt Write Off
(Ending June 30, 2013)
10
FY14 Open Position
11
46,698
0.0%
16,117
0.0%
30,581
0.0%
47,316
0.0%
15,759
0.0%
31,557
0.0%
(7,401)
41,013
-18.0%
(3,438)
15,702
-21.9%
(3,963)
25,311
-15.7%
(9,130)
35,726
-25.6%
(3,984)
12,268
-32.5%
(5,146)
23,458
-21.9%
(3,565)
33,231
-10.7%
(2,899)
11,858
-24.4%
(666)
21,373
-3.1%
(6,636)
35,434
-18.7%
(4,414)
13,871
-31.8%
(2,222)
21,562
-10.3%
(8,686)
35,494
-24.5%
(5,665)
13,022
-43.5%
(3,021)
22,472
-13.4%
(6,825)
31,639
-21.6%
(3,397)
11,243
-30.2%
(3,428)
20,396
-16.8%
(9,285)
34,136
-27.2%
(5,729)
12,734
-45.0%
(3,556)
21,402
-16.6%
(9,163)
33,625
-27.3%
(5,933)
11,623
-51.0%
(3,230)
22,002
-14.7%
(9,635)
37,231
-25.9%
(6,342)
13,155
-48.2%
(3,293)
24,076
-13.7%
(9,927)
40,804
-24.3%
(5,814)
14,588
-39.9%
(4,113)
26,216
-15.7%
FY Total (80,253)
452,347
00
(47,615)
161,940
-29.4%
(32,638)
290,406
-11.2%
Bal Yr Total (80,253)
358,33
-22.49%
(47,615)1
130,064
-36.6%
(32,638)
228,268
-14.3%
11
Electric Utility Activities
• 230 kV Interconnection Project
• Cap &Trade/Green House Gas (GHG)
• Renewable Portfolio Standard (RPS)
• Distribution System Patrols/Inspections
• OH/UG Maintenance Programs
• Energy Theft Diversion Program
• Staffing
12
V t 4
Public
O
Water/Wastewater
IFY 13 Quarterly Update
(Ending June 30, 2013)
City Council Shirtsleeve Session
September 24, 2013
Wastewater Fund
Cash Flow Summary
(Ending June 30, 2013)
Sales
Budget
13,873,500
Actuals
13,747,216
% of Budget
99%
Development Impact Mitigation Fees (wastewater & storm)
82,740
29,337
35%
Other (interest, septic, misc.)
279,040
528,878
190%
Total Revenues
Operating
14,235,280
6,395,240
14,305,431
5,532,601
100%
87%
Capital
2,763,657
1,095,686
40%
Debt Service
4,128,650
4,097,514
99%
Cost of Services Payment To General Fund
1,451,480
1,451,480
100%
Total Expenses
14,739,027
12,177,281
83%
Beginning Cash (Operations Only)
4,733,864
Ending Cash (Operations Only)
6,485,042
Days Cash (For Operations)
339
Days Cash Target
90
% of Target
376%
2
Wastewater
Operating Results
(Ending June 30, 2013)
Personnel
$
3,239,330
$
2,999,428
93%
Supplies, Materials, Services
$
2,049,890
$
1,568,705
77%
Equipment, Land, Structures
$
101,000
$
35,863
36%
Other Payments
$
205,120
$
230,372
112%
Utilities
$
707,400
$
683,508
97%
Work for Others
$
92,500
$
141725
16%
Total Operating Expenses
Is
6,395,240
$
5,532,601
87%
Wastewater Funds
Cash Balances
(Ending June 30, 2013)
E
Operating (170)
I
694859042
Utility Capital / Infrastructure Replacement (171)
690979456
Capital Reserve (172)
(Fund used to pay White Slough COP Debt Service)
Wastewater I M F (173)
2
159766
Rate Stabilization Reserve (174)
5009000
Storm Drain IMF (175)
597,248
Total
14,373,706
Water Fund
Cash Flow Summary
(Ending June 30, 2013)
Sales
Budget
12,419,950
Actuals
12,441,039
% of Budget
100%
Development Impact Mitigation Fees
19,670
2,529
13%
Other (interest, tap fees, water meters, misc.)
2,376,940
2,692,201
113%
Total Revenues
im
Operating
14,816,560
6,091,510
15,135,769
5,433,735
102%
i
89%
Capital
18,250,841
13,556,708
74%
Debt Service
2,968,610
2,988,136
101%
Cost of Services Payment To General Fund
1,060,120
1,060,120
100%
Total Expenses
28,371,081
23,038,699
81%
Beginning Cash (Operations Only)
15,064,674
Ending Cash (Operations Only)
8,279,037
Days Cash (For Operations)
465
Days Cash Target
90
% of Target
517%
Water
Operating Results
(Ending June 30, 2013)
Personnel
$
2,236,450
$
2,172,490
97%
Supplies, Materials, Services
$
11418,500
$
1,035,181
73%
Equipment, Land, Structures
$
48,000
$
45,857
96%
Other Payments
$
1,351,280
$
1,377,987
102%
Utilities
$
731,280
$
669,715
92%
Work for Others
$
306,000
$
132,505
43%
Total Operating Expenses
$
6,091,510
$
5,433,735
89%
C�
Water Funds
Cash Balances
(Ending June 30, 2013)
Bad Debt Write Off
(Through June 30, 2013)
Water / Wastewater Utility
Activities
Operational
■ Water Distribution
■ Water Production
■ Collection System
■ Wastewater Treatment
Regulatory
• SSO's
■ Discharge Violations
■ Monitoring and Reporting
ti�