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Home My WebLink AboutMinutes - April 10, 2018 SSLODI CITY COUNCIL SHIRTSLEEVE SESSION CARNEGIE FORUM, 305 WEST PINE STREET TUESDAY, APRIL 10, 2018 A. Roll Call by City Clerk An Informal Informational Meeting ("Shirtsleeve" Session) of the Lodi City Council was held Tuesday, April 10, 2018, commencing at 7:21 a.m. Present: Council Member Chandler, Council Member Kuehne, and Mayor Nakanishi Absent: Council Member Johnson, and Mayor Pro Tempore Mounce Also Present: City Manager Schwabauer, City Attorney Magdich, and City Clerk Ferraiolo B. Topic(s) B-1 Second Quarter Fiscal Year 2017/18 Water, Wastewater, and Electric Utility Department Financial Reports (CM) Rates & Resources Manager Melissa Price provided a PowerPoint presentation regarding the second quarter Fiscal Year 2017/18 Electric Utility Department financial reports. Specific topics of discussion included Electric Utility Fund cash flow summary, cash balances, reserve policy, Capital Improvement Project five-year spending plan, power sales, energy cost adjustment, operating results, power supply costs, and load coverage. Electric Utility Director Elizabeth Kirkley provided a PowerPoint presentation regarding an update on Lodi Electric Utility's strategic areas of focus, including customer, technology, financial, reliability, and workforce. In response to Council Member Kuehne, Ms. Price stated staff will provide Council with information on how Lodi ranks in comparison to the Sacramento Municipal Utility District's rates. Utilities Manager Lance Roberts provided a PowerPoint presentation regarding the second quarter Fiscal Year 2017/18 Water and Wastewater Department financial reports. Specific topics of discussion included Wastewater Fund cash flow summary, operating results, cash balances, and planned capital projects; Water Fund cash flow summary, operating results, cash balances, and planned capital projects; and Water/Wastewater Fund activities. In response to Mayor Nakanishi, City Manager Schwabauer stated he will provide Council with the debt service balances for the Water and Wastewater Funds. C. Comments by Public on Non-Agenda Items None. D. Adjournment No action was taken by the City Council. The meeting was adjourned at 7:53 a.m. ATTEST: Jennifer M. Ferraiolo City Clerk 1 1Public Works DepartmentWater/WastewaterFY 18 Quarterly Update(Ending December 31, 2017)City Council Shirtsleeve SessionApril 10, 2018 2Wastewater FundCash Flow Summary(Ending December 31, 2017)Budget Actuals % of BudgetRevenueSales 15,108,850 7,017,671 46%Development Impact Mitigation Fees (wastewater & storm) 1,266,190 234,981 19%Other (interest, septic, misc.) 2,575,140 155,357 6%Total Revenues18,950,180 7,408,009 39%ExpensesOperating 7,676,168 3,491,361 45%Capital 6,346,226 595,341 9%Debt Service 3,465,000 2,116,567 61%Cost of Services Payment To General Fund 1,102,490 551,245 50%Total Expenses18,192,986 6,754,514 37%Beginning Cash (Operations Only) 13,424,706Ending Cash (Operations Only) 15,050,323Days Cash (Excluding Capital) 450% of Target – 90 Days Cash on Hand 500% 3WastewaterOperating Results(Ending December 31, 2017)Budget Actuals % of BudgetPersonnel $ 3,577,482 1,859,597$ 52%Supplies, Materials, Services $ 2,524,538 864,380$ 34%Equipment, Land, Structures $ 654,398 94,475$ 14%Other Payments $ 231,160 301,202$ 130%Utilities $ 686,090 371,707$ 54%Work for Others $ 2,500 -$ 0%Total Operating Expenses $ 7,676,168 $ 3,491,361 45% 4Operating (530)15,050,323Utility Capital / Infrastructure Replacement (531)17,662Capital Reserve (532) (Fund used to pay White Slough COP Debt Service)(1,650,000)Wastewater IMF (533)1,008,216Rate Stabilization Reserve (534)500,000Storm Drain IMF (535)925,548Total15,851,749Wastewater FundsCash Balances(Ending December 31, 2017)Amounts above reserve target are held for scheduled capital maintenance Wastewater Planned Capital Projects5FY 17-18 FY 18-19 FY 19-20 FY 20-21 Villa Fiore Reimbursement 930,000Lockeford Street Imprv. 100,000MSC Security Improvements 35,000Misc. System Relocations 35,000 35,000 35,000Misc. Wastewater Taps 40,000 40,000 40,000Collection System Capacity Enhancement Projects 20,000 200,000Main Replacement Project #7 200,000 2,000,000Northeast Sewer Lift Pipe Repl. 60,000Vinewood Storm Water Pump Rehab 100,000Vehicles /Equipment 450,000 135,000 150,000 150,000Upgrade Blowers 750,000Irrigation Improvements 1,200,000 700,000Digester #4 Cleaning 220,000Field #5 Catwalk Repair 40,000Lagoon Cleaning 300,000Pump & Equipment Upgrades 175,000 345,000Corrosion Repairs 250,000Electrical/Screen/SCADA Design 660,000Electrical Upgrades/SCADA Construction 1,200,000 7,024,000 3,653,000White Slough Recycled Water Storage 300,000 4,000,000Field #5 Road Repair 150,000Miscellaneous Future Projects 100,000 100,000Totals $3,375,000 $9,800,000 $8,769,000 $3,978,000 6Water FundCash Flow Summary(Ending December 31, 2017)Budget Actuals % of BudgetRevenueSales 13,136,300 6,974,917 53%Development Impact Mitigation Fees 520,690 167,309 32%Other (interest, tap fees, water meters, misc.) 1,065,530 31,890 3%Total Revenues 14,722,520 7,174,116 49%ExpensesOperating 6,826,960 3,307,711 48%Capital 11,185,415 2,643,406 24%Debt Service 2,967,660 846,250 29%Cost of Services Payment To General Fund 814,490 407,245 50%Total Expenses 21,794,525 7,204,612 33%Beginning Cash (Operations Only) 5,153,806Ending Cash (Operations Only) 3,045,968Days Cash (Excluding Capital) 123% of Target – 90 Days Cash on Hand 137% 7WaterOperating Results(Ending December 31, 2017)Budget Actuals % of BudgetPersonnel $ 2,865,815 1,505,137$ 53%Supplies, Materials, Services $ 1,644,295 420,212$ 26%Equipment, Land, Structures $ 110,000 -$ 0%Other Payments $ 1,543,100 1,088,891$ 71%Utilities $ 563,750 293,471$ 52%Work for Others $ 100,000 -$ 0%Total Operating Expenses $ 6,826,960 $ 3,307,711 48% 8Water FundsCash Balances(Ending December 31, 2017)Operating (560) 3,045,968Utility Capital / Infrastructure Replacement (561) (49,028)IMF (562)873,240PCE/TCE Settlements 9,604,740PCE/TCE Rates (565) 4,058,966Total 17,533,886Amounts above reserve target are held for scheduled capital maintenance Water Planned Capital Projects9FY 17-18 FY 18-19 FY 19-20 FY 20-21Water Meter Program3,215,000 3,630,000 2,421,000Lockeford Street Imprv.400,000Water Taps75,000 75,000 75,000Misc. Water Mains50,000 50,000 50,000GAC Replacement300,000 300,000Meter Shop Design25,000 200,000Southwest Gateway Water Tank1,800,000Water Plant Generator300,000MSC Security Improvements35,000Well 7 Pump Rehab175,000Well 14 Pump Rehab171,000Well 15 Pump Rehab180,000Well 16 Pump Rehab212,000Well 17 Pump Rehab196,000Well 23 Pump Modifications70,000Well 24 Rehab165,000Vehicles/Equipment120,000 41,000 42,000Totals3,805,000 4,655,000 5,338,000 575,000 10Water / Wastewater Utility ActivitiesOperationalWater DistributionWater ProductionCollection SystemWastewater TreatmentRegulatorySSO’sDischarge ViolationsMonitoring and Reporting 1Electric Utility DepartmentFY 18 Quarterly Update(Ending December 31, 2017)City Council Shirtsleeve SessionApril 10, 2018 2Electric Utility FundCash Flow Summary(Ending December 31, 2017)Budget Actuals % of BudgetRevenueSales Revenues 69,828,170 38,596,008 55%Development Impact Fees 143,470 60,328 42%Other Revenues (interest, misc) 4,024,990 2,172,795 54%Total Revenues 73,996,630 40,829,131 55%ExpensesPurchase Power* 41,822,160 20,840,679 50%Non Power 14,557,637 5,377,933 37%Capital Projects 3,923,135 566,996 14%Debt Service 5,538,340 220,885 4%Cost of Service/Capital Xfer 2,388,490 1,194,245 50%In-lieu Transfer to General Fund 7,158,850 3,579,425 50%Total Expenses 75,388,612 31,780,163 42%Beginning Cash Balance (6/30/17) 22,713,089 Ending Cash Balance (12/31/17) 31,403,259 Reserve Policy Target 23,301,000% of Target 135%*Includes delayed postings to the General Ledger 3Electric Utility FundsCash Balances(Ending December 31, 2017)Operating Funds*$ 19,593,084 Utility Outlay Reserve Fund$ 625,000Public Benefits Fund$ 2,425,020 Impact Fee Fund$ 1,059,904 Solar Surcharge Fund $ 456,303 Greenhouse Gas Fund $ 7,243,948 Total $ 31,403,259 *Includes funds held locally and at NCPA Electric Utility Reserve Policy(December 31, 2017)4Purpose Target Actual*Operating Reserves $ 22,301,000 $ 30,778,259 Capital Reserve $ 1,000,000 $ 625,000 Total Target $ 23,301,000 $ 31,403,259 Cash balances support City Council approved reserve requirements and provide funds for pay as you go Capital ImprovementProjects.*Includes cash held locally and at NCPA Capital Improvement Project 5-Year Spending Plan5Project FY 17-18** FY 18-19 FY 19-20 FY 20-21 FY 21-22Distribution Capacity Program $700,000 $960,000 $250,000 $250,000 $250,000Underground Maintenance* $1,100,000 $1,200,000 $700,000 $700,000 $700,000Streetlight Maintenance / Repair $180,000 $90,000 $90,000 $90,000 $90,000LED Streetlight Improvements$90,000 $90,000 $91,000 $91,000 $91,000230 kV Interconnection Project$60,000 $60,000 $0 $0 $0Overhead Maintenance**$542,623 $100,000 $275,000 $275,000 $275,000Substation Maint / Improvements$200,000 $525,000 $200,000 $500,000 $1,350,000Building & Security Improvements**$497,492 $1,035,000 $250,000 $250,000 $0Meter Data Management System$300,000 $0 $850,000 $850,000 $0Vehicles & Equipment**$253,020 $179,000 $350,000 $250,000 $315,000Total Projects $3,923,135 $4,239,000 $3,056,000 $3,256,000 $3,071,000*Includes work for others.**Includes previous year rollover. Power Sales(Ending December 31, 2017)6Power Sales (kWh)Customer Class Budget ActualResidential 151,255,540 90,474,666Small Commercial 160,043,844 84,567,749Large Commercial/Small Industrial 49,188,321 24,356,250Industrial 71,906,433 37,005,725Total 432,394,138 236,404,390Revenue ($)Customer Class Budget Actual Average RateResidential $ 27,937,783 $ 15,683,257 $ 0.1733 Small Commercial $ 27,302,858 $ 14,587,502 $ 0.1725 Large Commercial/Small Industrial $ 6,939,313 $ 3,839,345 $ 0.1576 Industrial $ 7,648,216 $ 4,485,904 $ 0.1212 Total $ 69,828,170 $ 38,596,008 $ 0.1633 ECA Revenue(Ending December 31, 2017)7Customer Class Total ($)Residential $ 203,242Small Commercial $ 400,874Large Commercial / Small Industrial $ 137,806Industrial $ 248,476Total Revenue $ 990,398 8Electric Utility FundOperating Results(Ending December 31, 2017)FY18 Budget FY18 Actual % of Budget Personnel $ 8,906,935 $ 4,236,877 48%Supplies, Materials, Services $ 3,836,042 $ 712,237 19%Other Payments $ 1,730,760 $ 401,890 23%Utilities $ 83,900 $ 26,929 32%Total Operating Expenses $ 14,557,637 $ 5,377,933 37% Power Supply Costs(Ending December 31, 2017)9Budgeted Year to Date % of BudgetGeneration $ 29,919,900 $ 15,116,689 51%Transmission $ 10,503,530 $ 4,995,424 48%Management Services $ 1,398,730 $ 728,566 52%Total Power Supply Costs $ 41,822,160 $ 20,840,679 50% Load Coverage10MWh LoadROC Matrix TargetLoad Coverage (Including Purchases)Q2 – 2018109,621 80.0% 79.8%Q3 – 2018 135,758 77.0% 76.8%Q4 – 2018 104,752 67.0% 66.5%Q1 – 2019 99,306 60.0% 59.8%Includes energy purchases through 3/31/18 as approved by Risk Oversight Committee 11City Council Strategic Areas of Focus•Customer•Technology•Financial•Reliability•Workforce