HomeMy WebLinkAboutMinutes - February 25, 2014 SSLODI CITY COUNCIL
SHIRTSLEEVE SESSION
CARNEGIE FORUM, 305 WEST PINE STREET
TUESDAY, FEBRUARY 25, 2014
An Informal Informational Meeting ("Shirtsleeve" Session) of the Lodi City Council was held
Tuesday, February 25, 2014, commencing at 7:00 a.m.
Present: Council Member Johnson, Council Member Mounce, Council Member Nakanishi, and
Mayor Katzakian
Absent: Mayor Pro Tempore Hansen
Also Present: Interim City Manager Schwabauer, Interim City Attorney Magdich, and City Clerk
Johl-Olson
Deputy Public Works Director Larry Parlin provided a PowerPoint presentation regarding the
quarterly update. 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 Johnson, Mr. Parlin stated the Finance Department makes
transfers to the utility operations throughout the year.
In response to Council Member Johnson, Mr. Parlin stated hot spots for sewer back-ups due to
increased conservation are more likely to occur in commercial areas such as downtown.
In response to Council Member Nakanishi, Mr. Parlin stated costs for sewer back-up calls vary
based on the time of call out and whether or not it is after hours.
In response to Council Member Johnson, Mr. Parlin and Mr. Schwabauer confirmed that, while
the water report may be distributed electronically per State law, Proposition 218 matters cannot
be handled electronically.
In response to Council Member Johnson, Mr. Parlin stated the water for the banking authority
project will come from the Mokelumne rivershed.
Electric Utility Director Elizabeth Kirkley provided a PowerPoint presentation regarding the
quarterly update. Specific topics of discussion included electric fund cash flow summary, reserve
policy, cash balances, power sales, Energy Cost Adjustment revenue, operating results, power
supply costs, billing statistics, bad debt write off, load coverage, and activities.
In response to Council Member Johnson, Ms. Kirkley stated the utility is required to collect 2.85%
of sales revenue for the public benefit fund.
In response to Mayor Katzakian, Ms. Kirkley stated when we buy load for next fiscal year it is
accounted for in that next fiscal year because the utility is not charged until the power is
delivered.
In response to Council Member Johnson, Ms. Kirkley stated the utility layers in purchases
A. Roll Call by City Clerk
B. Topic(s)
B-1 Second Quarter Fiscal Year 2013/14 Water, Wastewater, and Electric Utility Department
Financial Reports (CM)
throughout the year based on a diversified portfolio while monitoring the market in conjunction
with Northern California Power Agency and buys the power when the timing is right. Ms. Kirkley
stated the open position gap is typical of industry standards.
In response to Council Member Nakanishi, Ms. Kirkley provided an overview of how the natural
gas prices are tied to power supply purchases and drought conditions.
In response to Council Member Johnson, Ms. Kirkley confirmed that staff is looking into options
for labeling the utility's copper as PG&E has done in response to increased copper thefts.
In response to Council Member Johnson, Mr. Schwabauer stated immunity is not available from
PG&E for the 230kV project because the project risk associated with being classified as a
transmission operator involves the City directly entering and exiting the system at 230kV versus
60kV. A brief discussion ensued amongst the City Council and Mr. Schwabauer regarding the
benefits of the project to the City and PG&E.
In response to Council Member Mounce, Mr. Schwabauer stated with respect to impact fees the
project should pay for itself based on the study and existing load profile is already being
maximized notwithstanding projected growth in areas such as Reynolds Ranch.
In response to Mayor Katzakian, Ms. Kirkley stated the project will save approximately $2 million
annually.
In response to Council Member Nakanishi, Ms. Kirkley stated the utility is not a part of the grid so
there is no revenue generation as a result. Ms. Kirkley stated the transmission operator
classification would be based on the utility's direct impact on the grid.
None.
No action was taken by the City Council. The meeting was adjourned at 7:50 a.m.
C. Comments by Public on Non-Agenda Items
D.Adjournment
ATTEST:
Randi Johl-Olson
City Clerk
Electric Utility DepartmentFY 14 Quarterly Update(Ending December 31, 2013)City Council Shirtsleeve SessionF b 25 2014February25,20141
Electric FundCash Flow Summary(Ending December 31 2013)(Ending December 31,2013)Budget Actuals % of BudgetRevenueSales Revenues66 894 14035 267 50653%Sales Revenues66,894,14035,267,50653%Development Impact Fees 200,000 75,938 38%Other Revenues (interest, misc) 4,033,850 381,602 9%Total Revenues 71,127,990 35,725,046 50%ExpensesPurchase Power 39,408,270 20,109,612 51%,,,,Non Power 11,947,910 4,433,848 37%Capital Projects 2,012,700 253,044 13%Debt Service 8,241,460 6,494,575 79%Cost of Service 2,354,000 1,177,000 50%In-lieu Transfer to General Fund 6,976,670 3,488,335 50%Total Expenses 70,941,010 35,956,415 51%Net Chg in Bal Sheet Accts 687,284 Net Increase (Decrease) 186,980 455,915 Beginning Local Cash Balance 13,235,812 13,235,812 Ending Local Cash Balance 13,422,792 13,691,727 GOR Balance 8,666,719 Total Reserve Balance 22,358,446 Reserve Policy Target 23,232,000 % of Target96%2%ofTarget 96%
Electric Utility Reserve Policy(Ending December 31 2013)(Ending December 31,2013)Purpose Basis Target ActualpgOperating Reserve 90 Days Cash $ 17,232,000 $ 13,691,727Capital Reserve Largest Distribution System Contingency $ 1,000,000NCPA General Operating Reserve NCPA Identified Items $ 5,000,000 $ 5,844,745NCPA MPP/GPP Balance MPP/GPP Security Commitments $ 2,821,974TotalTarget$23,232,000$22,358,446TotalTarget$23,232,000$22,358,4463
Electric FundsCash Balances(Ending December 31, 2013)(g ,)Operating (160)$ 7,730,050Utility Outlay Reserve Fund (161)$ (3,448,739)Electric Rate Stability Reserve (162) $ 2,159,996Public Benefits Fund (164)$ 4,382,334IMF EU Substation and Transmission (165)$735,750(),Solar Surcharge Fund (166)$ 137,878Environmental Compliance (168)$ 1,994,458NCPAGeneral Operating Reserve (GOR)$8666719NCPA–General Operating Reserve (GOR)$8,666,719Total$ 22,358,4464
Power Sales(Ending December 31 2013)(Ending December 31,2013)BudgetedSalesYear to Date Sales % BudgetkWh 442,186,628 234,356,847 53%Revenue $ 66,894,140 $ 35,267,506 53%Year HDD Normal CDD NormalJuly 2013 0 0 388 363August 2013 0 0 319 332September 2013 6 0 204 222October 2013 83 91 2 54November 2013 310 360 0 0December 2013 637 603 0 0FY13 Total1036 1054 913 9715
ECA Revenue(Ending December 31 2013)(Ending December 31,2013)Customer ClassQ1Q2TotalCustomer ClassQ1Q2TotalResidential $ (157,405) $ 302,855 $ 145,450 Small Commercial $ (154,690) $ 308,120 $ 153,431 Large Commercial/Small Industrial $ (45,706) $ 94,584 $ 48,879 Industrial$(169,465)$ 151,243$(18,222)$(,)$,$(,)Total ECA Revenue $ (527,265) $ 856,803 $ 329,537 6
Electric FundOperating Results(Ending December 31 2013)(Ending December 31,2013)FY14 Budget FY14 Actual % of Budget Personnel $ 5,862,530 $ 2,736,602 47%Supplies, Materials, Services $ 3,158,730 $ 768,137 24%Equipment, Land, Structures $ 1,267,800 $ 498,967 39%Other Payments $ 1,605,000 $ 406,052 25%Utilities $ 53,850 $ 24,090 45%Total Operating Expenses $ 11,947,910 $ 4,433,848 37%7
Power Supply Costs(Ending December 31 2013)(Ending December 31,2013)Bd tdYtDt%fBd tBudgetedYeartoDate% ofBudgetGeneration $ 32,670,010 $ 18,176,505 56%Transmission $ 9,544,450 $ 4,033,620 42%Management Services$ 1 333 500$ 745 66256%Management Services$1,333,500$745,66256%Third Party Revenue $ (4,139,690) $ (2,846,175) 69%AdjustmentsTOTAL$ 39 408 270$ 20 109 61251%TOTAL$39,408,270$20,109,61251%8
Billing Statistics(Ending December 31 2013)(Ending December 31,2013)Budgeted Sales FY14Customer Class kWh Sales Revenue Average RateResidential 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 TOTAL442,186,628$66,894,140$ 0.1513TOTAL442,186,628$ 66,894,140$ 0.1513Actual Sales FY14Customer Class kWh Sales Revenue Average RateResidential 81,535,738 $ 13,797,436 $ 0.1692 Small Commercial 83,701,884 $ 13,510,340 $ 0.1614 Large Commercial/Small Industrial 23,725,146 $ 3,402,794 $ 0.1434 Industrial 45,394,079 $ 4,556,936 $ 0.1004 TOTAL 234,356,847 $ 35,267,506 $ 0.1505 9
Bad Debt Write Off(Ending December 31 2013)(Ending December 31,2013)# Of Accounts Amount % of SalesElectric 432 $77,645 0.22%10
CY 14 Load CoverageMWh LoadLoad Coverage Before FebPurchasesROC Matrix TargetLoad Coverage After Feb PurchasesPurchasesPurchasesQ1 – 2014*34,136 72.2% 85.0% 84.4%Q2 – 2014 111,660 65.5% 85.0% 85.2%Q3 – 2014 136,228 63.2% 85.0% 84.1%Q4–2014106 02558 6%75 0%76 8%Q4–2014106,02558.6%75.0%76.8%*Includes March 2014 Only11
Electric Utility ActivitiesElectricUtilityActivities•Staffing•SafetyProgramyg•StreetLights•UG / OH MaintenanceUG/OHMaintenance•DistributionCapacityProgram•Financial Model / Cost of Service•FinancialModel/CostofService•230kVInterconnectionProjectNERC C li12•NERCCompliance
Public Works DepartmentWater/WastewaterWater/WastewaterFY 14 Quarterly Update(Ending December 31, 2013)City Council Shirtsleeve SessionF b 25 2014February25,20141
Wastewater FundCash Flow Summary(Ending December 31, 2013)Budget Actuals % of BudgetRevenueSales14 020 5806 910 85549%Sales14,020,5806,910,85549%Development Impact Mitigation Fees (wastewater & storm) 161,870 22,546 14%Other (interest, septic, misc.) 174,950 186,763 107%Total Revenues14,357,400 7,120,164 50%,,,,ExpensesOperating 6,283,980 3,049,168 49%Capital 1,589,514 233,673 15%pDebt Service 6,904,490 3,522,301 51%Cost of Services Payment To General Fund 1,068,000 534,000 50%Total Expenses15,635,580 7,339,142 47%Beginning Cash (Operations Only) 4,329,772Ending Cash (Operations Only) 5,055,217Days Cash (Excluding Capital)1282y( gp)% of Target 142%
WastewaterOperating Results(Ending December 31, 2013)Budget Actuals % of BudgetPersonnel $ 3,203,460 1,532,698$ 48%Supplies, Materials, Services $ 2,096,630 945,531$ 45%Equipment, Land, Structures $ 79,000 63,689$ 81%Other Payments $ 202,630 179,924$ 89%Utilities $ 692,260 327,326$ 47%Work for Others $ 10,000 -$ 0%Total Operating Expenses $ 6,283,980 $ 3,049,168 49%3
Wastewater FundsCash Balances(Ending December 31, 2013)(g ,)Operating (170)5,055,217Utilit C it l / I f t t R l t (171)9 144 240UtilityCapital/InfrastructureReplacement (171)9,144,240Capital Reserve (172) (Fund used to pay White Slough COP Debt Service)(3,931,805)Wastewater IMF (173)32,078Rate Stabilization Reserve (174)500,000Storm Drain IMF (175)593,510Total11,393,2404
Water FundCash Flow Summary(Ending December 31, 2013)Budget Actuals % of BudgetRevenueSl12 694 9306 766 44053%Sales12,694,9306,766,44053%Development Impact Mitigation Fees 149,860 59,735 40%Other (interest, tap fees, water meters, misc.) 1,640,180 818,757 50%Total Revenues14 484 9707 644 93253%Total Revenues14,484,9707,644,93253%ExpensesOperating 5,824,036 2,696,707 46%Capital 7,472,494 3,311,242 44%p,,,,Debt Service 2,969,610 893,626 30%Cost of Services Payment To General Fund 780,000 390,000 50%Total Expenses 17,046,140 7,291,575 45%Beginning Cash (Operations Only) 8,875,440Ending Cash (Operations Only) 10,805,906Days Cash (Excluding Capital) 4895% of Target 543%
WaterOperating Results(Ending December 31, 2013)Budget Actuals % of BudgetPersonnel $ 2,106,056 1,165,284$ 55%Supplies, Materials, Services $ 1,388,810 500,635$ 36%Equipment, Land, Structures $ 82,000 6,581$ 8%Other Payments $ 1,382,420 658,459$ 48%Uilii$4036 48$48%Utilities$ 754,750365,748$48%Work for Others $ 110,000 -$ 0%Total Operating Expenses $ 5,824,036 $ 2,696,707 46%6
Water FundsCash BalancesCash Balances(Ending December 31, 2013)Operating (180)10,805,906Utility Capital / Infrastructure Replacement (181)(1,863,635)Capital Reserve Restricted Assets (181) (Water Plant Bond Remaining Proceeds)2,349,388IMF (182)60,025PCE/TCE Settlements11,397,499PCE/TCE Rates (185)4,407,294Total27,156,4777
Bad Debt Write Off(Through December 31 2013)(Through December 31,2013)# Of AccountsAmount%ofSales# Of AccountsAmount% of SalesWastewater 432 $32,806 0.5%Water432$38 77706%Water432$38,7770.6%8
Water / Wastewater Utility ActivitiesOtilOperationalWater DistributionWt P d tiWaterProductionCollection SystemWt tT t tWastewaterTreatmentRegulatorySSO’SSO’sDischarge ViolationsMonitoring and Reporting9Monitoring and Reporting