HomeMy WebLinkAboutMinutes - November 19, 2013 SSLODI CITY COUNCIL
SHIRTSLEEVE SESSION
CARNEGIE FORUM, 305 WEST PINE STREET
TUESDAY, NOVEMBER 19, 2013
A. Roll Call by City Clerk
An Informal Informational Meeting ("Shirtsleeve" Session) of the Lodi City Council was held
Tuesday, November 19, 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 First Quarter of Fiscal Year 2013/14 Endinq
September 30, 2013 (CM)
Deputy Public Works Director Larry Parlin provided a PowerPoint presentation regarding the
water and wastewater quarterly update. Specific topics of discussion included water and
wastewater cash flow summary, operating results, cash balances, bad debt write-off, and utility
activities.
In response to Council Member Johnson, Deputy City Manager Jordan Ayers stated the bad debt
write-off has come down to approximately $330,000 annually from $545,000 a few years ago.
In response to Council Member Hansen, Mr. Parlin stated the City used its full allotment of water
this year and did not tap into the banked reserve water. Mr. Parlin stated he anticipates the
banked water will be used within 10 to 15 years and there is no time frame during which it must
be used because the new plant is already online.
In response to Council Member Hansen, Mr. Parlin stated if new rules are put into place
regarding hydrant discharge, there will likely be fines associated with it for cities.
In response to Council Member Mounce, Mr. Parlin stated the hydrant regulation discussions are
occurring at the staff level currently and he is not aware of any legislators that have come forward
to carry specific legislation for this topic as of yet.
Electric Utility Director Elizabeth Kirkley provided a PowerPoint presentation regarding the electric
utility quarterly update. 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 Hansen, Ms. Kirkley stated there is typically a spike in power
sales during December in light of holiday light displays and excess electricity use.
In response to Council Member Hansen, Ms. Kirkley stated the public benefit fund has
accumulated its current balance over the last ten years and the fund balance is largely dependent
upon the level of program participation.
In response to Council Member Johnson, Ms. Kirkley stated the City is required to set aside
2.85% annually in the public benefit fund and future projects include street light retrofitting.
In response to Council Member Hansen, Ms. Kirkley stated the street lighting project is
dependent upon cash flow, which is currently at 121 days cash on hand, 31 days over the 90 -day
requirement.
In response to Mayor Nakanishi, City Manager Bartlam stated that, while there is no State cap on
the public benefit fund, it does need to be spent down but can be done so in a methodical way in
light of cash flow considerations.
In response to Mayor Pro Tempore Katzakian, Mr. Bartlam stated the Northern California Power
Agency defines the public benefit fund as cash for cash on hand policy purposes and the City is
supportive of the same.
In response to Council Member Hansen, Ms. Kirkley stated the management vacancies for the
department have now been filled and the three remaining vacancies are in recruitment as well.
Mayor Nakanishi suggested publicizing the fact that the ECA has gone down resulting in cost
savings for residents.
In response to Council Member Mounce, Mr. Ayers confirmed that the new service shut-off and
payment policy has positively affected bad debt write-off because that number has declined from
approximately $545,000 annually to $330,000 annually.
Mayor Nakanishi requested information about bad debt write-off in comparison to the percentage
of sales for other electric utilities.
In response to Council Member Hansen, Ms. Kirkley stated Cal -ISO has a projected in-service
date of May 2017 for the new interconnection project but PG&E has a longer timeline and staff is
in support of the shorter in-service date.
In response to Council Member Johnson, Mr. Bartlam confirmed that staff provided assistance to
PG&E on the interconnection project by way of sharing general knowledge about land
identification but the City is not selecting the actual route for PG&E.
In response to Council Member Hansen, Ms. Kirkley stated the price of renewables has gone
down, which is good news, and staff is working on projects to help the City meet the 33% goal by
2020.
In response to Council Member Hansen, Business Development Manager Rob Lechner
confirmed that the low income for weatherization program is primarily for homeowners although
an additional phase includes residential rentals.
In response to Council Member Mounce, Mr. Lechner stated residential rentals for the
weatherization program would be identified through the SHARE and rate discount programs.
In response to Council Member Mounce, Mr. Lechner stated that, while the goal of the Energy
Orbit program is to process rebates online for efficiency purposes, mail processing, including the
availability of rebate forms, will remain for those customers that do not have online access.
In response to Mayor Nakanishi, Mr. Bartlam stated that, if a Proposition 218 protest was
successful and the City was unable to raise rates at anytime in the future, the City would have a
variety of temporary options including capital project delays and elimination, but would eventually
go bankrupt in the future without the revenue to pay for the service.
In response to Mayor Pro Tempore Katzakian, Mr. Ayers confirmed that the $8.2 million debt
service amount includes $5.3 million for a 2002 issue to retire in 2015-2016 and approximately
$3 million for a 2008 issue with a 30 -year payoff.
In response to Council Member Mounce, Mr. Bartlam stated the downtown camera has not
worked properly since its inception and he has received very few comments about it since it has
been in place indicating there is not a strong need for it.
C. Comments by Public on Non -Agenda Items
None.
D. Adjournment
No action was taken by the City Council. The meeting was adjourned at 7:48 a.m.
ATTEST:
Randi Johl-Olson
City Clerk
AGENDA ITEM ob a*0 I
A% CITY OF LODI
,. COUNCIL COMMUNICATION
TM
AGENDA TITLE: Receive Utility Financial Reports for the First Quarter of Fiscal Year 2013/14
Ending September 30, 2013
MEETING DATE: November 19, 2013
PREPARED BY: Deputy City Manager
RECOMMENDED ACTION: Receive utility financial reports for the first quarter of
the fiscal year 2013/14 ending September 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
November 19, 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.
9 • 0
Jord& Ayers
Deputy City Manager
, City Manager
Electric Utility Department
IFY 14 Quarterly Update
(Ending September 30, 2013)
City Council Shirtsleeve Session
November 19, 2013
Electric Fund
Cash Flow Summary
(Ending September 30, 2013)
Net Increase (Decrease)
Budget
Actuals
% of Buda et
Sales Revenues
66,894,140
20,213,743
30%
Development Impact Fees
200,000
47,780
24%
Other Revenues interest, misc
4,033,850
62,590
2%
Total Revenues
71,127,990
20 324113
29%
Purchase Power
39,408,270
10,613,797
27%
Non Power
11,947,910
2,181,428
18%
Capital Projects
2,012,700
100,926
5%
Debt Service
8,241,460
4,751,600
58%
Cost of Service
2,354,000
588,500
25%
In -lieu Transfer to General Fund
6,976,670
1,744,168
25%
Total Expenses
70,941,010L19,980,419
28%
Net Chg in Bal Sheet Accts(2,237,849)1
Net Increase (Decrease)
186,980
(1,894,156)
Beginning Local Cash Balance
13,235,812
13,235,812
Ending Local Cash Balance
13,422,792
11,341,657
GOR Balance
8,644,250
Total Reserve Balance
19,985,907
Reserve Policy Target
24,432,000
% of Target
82%
2
Electric Utility Reserve Policy
(Ending September 30, 2013)
Operating Reserve
90 Das Cash
$
17,232,000
$
11,341,657
Capital Reserve
Largest Distribution System Contingency
$
1,000,000
NCPA General Operating Reserve
NCPA Identified Items
$
6,200,000
$
5,152,414
NCPA MPP/GPP Balance
MPP/GPP Security Commitments
$
3,491,836
Total Target
1 1
$
24,432,0001
$
19,985,907
Electric Funds
Cash Balances
(Ending September 30, 2013)
M
Operating (160)
$
I
5,347,527
Utility Outlay Reserve Fund (161)
$
(3,235,617)
Electric Rate Stability Reserve (162)
$
2,157,205
Public Benefits Fund (164)
$
4,290,761
IMF EU Substation and Transmission (165)
$
707,592
Solar Surcharge Fund (166)
$
58,612
Environmental Compliance (168)
$
2,015,576
NCPA — General Operating Reserve (GOR)
$
8,644,250
Total
$
19,985,907
El
Power Sales
(Ending September 30, 2013)
ECA Revenue
(Ending September 30, 2013)
Residential
$
157,405
$
157,405
Small Commercial
$
154,690
$
154,690
Large Commercial/Small Industrial
$
45,706
$
45,706
Industrial
$
169,465
$
169,465
Total ECA Revenue
$
527,265
$
527,265
R
Electric Fund
Operating Results
(Ending September 30, 2013)
Personnel
$
5,862,530
$
1,358,003
23%
Supplies, Materials, Services
$
3,158,730
$
394,211
12%
Equipment, Land, Structures
$
1,267,800
$
310,899
25%
Other Payments
$
1,605,000
$
106,459
7%
Utilities
$
53,850
$
11,856
22%
Total Operating Expenses
$
11,947,910
$
2,181,428
18%
Power Supply Costs
(Ending September 30, 2013)
Generation
$
32,670,010
$
8,523,979
26%
Transmission
$
9,544,450
$
2,461,081
26%
Management Services
$
1,333,500
$
419,765
31%
Third Party Revenue
$
4,139,690
$
791,028
19%
Adjustments
TOTAL
$
39,408,270
$
10,613,797
27%
Billing Statistics
(Ending September 30, 2013)
Residential
151,836,774
$
25,388,105
$
0.1672
Small Commercial
155,602,780
$
24,553,085
$
0.1578
Large Commercial/Small Industrial
40,860,621
$
6,375,542
$
0.1560
Industrial
93,886,453
$
10,577,408
$
0.1127
TOTAL
442 186,628
$
66,894,140.$
$
0.1513
Residential
49,461,466
$81,442,09
0
110
Small Commercial
45,874,943
$
7,429,147
$
0.1619
Large Commercial/Small Industrial
13,086,687
$
1,866,770
$
0.1426
Industrial
25,094,431
$
2,475,730
$
0.0987
TOTAL
133,517,527
$
20,213 743
$
0.1514
Bad Debt Write Off
(Ending September 30, 2013)
10
FY14
FY14 Open Position
11
46,698
0.0%
30,581
0.0%
16,117
0.0%
47,316
0.0%
31,557
0.0%
15,759
0.0%
41,013
0.0%
25,311
0.0%
15,702
0.0%
35,726
0.0%
23,458
0.0%
12,268
0.0%
33,231
0.0%
21,373
0.0%
11,858
0.0%
5,193
35,434
-14.7%
2,886
21,562
-13.4%
(2,307)
13,871
-16.6%
(7,947)
35,494
-22.4%
(4,901)
22,472
-21.8%
(3,046)
13,022
-23.4%
(6,467)
31,639
-20.4%
(2,902)
20,396
-14.2%
(3,565)
11,243
-31.7%
8,890
34,136
-26.0%
5,240
21,402
-24.5%
(3,651)
12,734
-28.7%
(4,903)
33,625
-14.6%
(1,404)
22,002
-6.4%
(3,499)
11,623
-30.1%
(5,456)
37,231
-14.7%
(1,948)
24,076
-8.1%
(3,509)
13,155
-26.7%
(5,228)
40,8041
-12.8%
(1,050)
26,2161
-4.0%
(4,179)
14,588
-28.6%
FY Total (44,085)
452,347
-9.7%
(20,330)
290+407-7.0%
23 756
161 939
-14.7%Bal
Yr Total 44 085
248 362
-17.8%
20 330
15812.9%
(23,756)
90,235
11
Electric Utility Activities
• 230 kV Interconnection Project
• Environmental Compliance: RPS & GHG
• OH/UG Maintenance Programs
• Energy Theft Diversion Program
• Key Accounts Energy Efficiency Class
• Low Income Weatherization Program
• Financial Model / Cost of Service Study
• Staffing
12
V t 4
Public
O
Water/Wastewater
IFY 14 Quarterly Update
(Ending September 30, 2013)
City Council Shirtsleeve Session
November 19, 2013
Wastewater Fund
Cash Flow Summary
(Ending September 30, 2013)
Sales
Budget
14,020,580
Actuals
3,421,888
% of Budget
24%
Development Impact Mitigation Fees (wastewater & storm)
161,870
4,412
3%
Other (interest, septic, misc.)
174,950
100,707
58%
Total Revenues
M
Operating
14,357,400
6,158,880
3,527,007
1,556,435
25%
I
25%
Capital
1,504,210
56,636
4%
Debt Service
6,904,490
(187,424)
(3%)
Cost of Services Payment To General Fund
1,068,000
267,000
25%
Total Expenses
15,635,580
1,692,647
11%
Beginning Cash (Operations Only)
3,167,567
Ending Cash (Operations Only)
4,329,772
Days Cash (Excluding Capital)
238
% of Target
264%
2
Wastewater
Operating Results
(Ending September 30, 2013)
Personnel
$
3,203,460
$
796,051
25%
Supplies, Materials, Services
$
1,971,530
$
439,555
22%
Equipment, Land, Structures
$
79,000
$
39,136
50%
Other Payments
$
202,630
$
111,881
55%
Utilities
$
692,260
$
169,812
25%
Work for Others
$
10,000
$
-
0%
Total Operating Expenses
$
6,158,880
$
1,556,435
25%
Wastewater Funds
Cash Balances
(Ending September 30, 2013)
E
Operating (170)
I
493299772
Utility Capital / Infrastructure Replacement (171)
993719503
Capital Reserve (172)
(Fund used to pay White Slough COP Debt Service)
(1,509,998)
Wastewater IMF (173)
189329
Rate Stabilization Reserve (174)
500,000
Storm Drain IMF (175)
596,597
Total
13,306,203
El
Water Fund
Cash Flow Summary
(Ending September 30, 2013)
Sales
Budget
12,694,930
Actuals
3,627,211
% of Budget
29%
Development Impact Mitigation Fees
149,860
38,519
26%
Other (interest, tap fees, water meters, misc.)
1,640,180
373,188
23%
Total Revenues
im
Operating
14,484,970
5,811,470
4,038,918
1,664,293
28%
i
29%
Capital
6,654,260
1,341,446
20%
Debt Service
2,969,610
(178,717)
(6%)
Cost of Services Payment To General Fund
780,000
195,000
25%
Total Expenses
16,215,340
3,022,022
19%
Beginning Cash (Operations Only)
6,780,394
Ending Cash (Operations Only)
8,875,440
Days Cash (Excluding Capital)
475
% of Target
528%
Water
Operating Results
(Ending September 30, 2013)
Personnel
$
2,093,490
$
549,516
26%
Supplies, Materials, Services
$
1,388,810
$
249,854
18%
Equipment, Land, Structures
$
82,000
$
1,940
2%
Other Payments
$
1,382,420
$
649,855
47%
Utilities
$
754,750
$
213,128
28%
Work for Others
$
110,000
$
-
0%
Total Operating Expenses
$
5,811,470
$
1,664,293
29%
R
Water Funds
Cash Balances
(Ending September 30, 2013)
Bad Debt Write Off
(Through September 30, 2013)
Water / Wastewater Utility
Activities
Operational
■ Water Distribution
■ Water Production
■ Collection System
■ Wastewater Treatment
Regulatory
• SSO's
■ Discharge Violations
■ Monitoring and Reporting
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