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Home My WebLink AboutAgenda Report - November 3, 2021 C-04AGENDA ITEM (! d04 �Q CITY OF LODI COUNCIL COMMUNICATION TM AGENDA TITLE: Adopt Resolution Approving Final Budget Adjustments for Fiscal Year 2021 and Appropriating Funds ($142,075.19) MEETING DATE: November 3, 2021 PREPARED BY: Budget Manager RECOMMENDED ACTION: Adopt resolution approving final budget adjustments for Fiscal Year 2021 appropriating funds ($142,075.19). BACKGROUND INFORMATION The year-end closing process for each fiscal year takes many months to finalize all expenditures and journal postings. During the closing process for FY 21, additional budget was needed in both Transit and Risk Management funds and adjustments to three Electric Utility capital improvement projects were needed. Transit received a grant the State of California to offer students free bus fares. The program has been expended for two years fiscal years without budget appropriations. An appropriation of $67,579.70 is needed to expense the cost of the free ride shares. Revenue was received in FY 19 to operate the program. The Risk Management fund includes Worker's Compensation. This fund is budgeted using historical and projected claims for the upcoming year. For Fiscal Year 2020/21, the overall expenses exceeded budget by $74,495.49. This overage occurred in the temporary and permanent disability accounts. Lastly, two capital improvement projects in Electric Utility needed final budget adjustments. The LED Streetlight Improvement Project expended an additional $45,924.43 in material costs as part of the multi- year effort to convert the remaining non -LED decorative fixtures to LED technology. In addition, underground maintenance expenses associated with unplanned repairs expended an additional $279,496.62 to close the fiscal year. The overhead maintenance program had sufficient budget to shift funding to the two aforementioned projects resulting in a net increase of $0 to the overall Electric Utility CIP budget. FISCAL IMPACT: Transit: Revenue for the bus fares was received in FY19. No FY 21 impact Risk Management: Workers Compensation funds are collected annually from departments based on historical utilization of the program. Increased costs will be spread over a three year period. Departments will see some year over year increase. Electric Utility: No net fiscal impact FUNDING AVAILABLE: Fund balance is available in both Transit and Risk Management to cover the budgetary adjustments. Andrew Keys, Deputy City Manager 1:a��''i APPROVED: PR. hAi Stephen Schwabauer, City Manager Capital Improvement Program - Maintenance Fiscal Year 2020/21 Program Maintenance Project Title: 12 kV Overhead Maintenance Munis Project Code: EUCP-21002 #43 Section I:Description District Nos: Project Length Ongoing Priority High Maintenance and improvements associated with the 12 kV overhead distribution system. Justification/factor driving project These ongoing efforts are primarily focused on the replacement of annealed copper conductors with aluminum conductor steel reinforced (ACSR). Whereas copper is notoriously brittle and prone to breakage with age, ACSR offers optimal strength for overhead line design. Additional activities may include replacement of poles, transformers and/or switches as needed. Additional Information These ongoing maintenance efforts support the City Council adopted Lodi Electric Utility Strategic Plan goal of designing, operating and maintaining a distribution system to ensure safe, reliable electric service. Of the $300,878 FY 19/20 total, $878.30(Materials.Other) was carried forward. Section II Estimated Project Costs Expenditure Prior Years FY 19120 FY 20121 FY 21122 FY 22123 FY 23124 FY 24125 Future Yrs Total Estimate Budget Internal Staff $ - $ 510,000 $ 410,000 $ 460,000 $ 308,200 $ 308,200 $ 200,000 $ 2,196,400 Miscellaneous $ - $ 390,898 $ 291,000 $ 350,000 $ 234,500 $ 234,500 $ 200,000 $ 1,700,898 Contracts $ - $ 324,579 $ 324,579 Total Capital Costs $ - $ 900,898 $ 19025,579 $ 810,000 $ 542,700 $ 542,700 $ 400,000 $ - $ 49221,877 Section III Funding Sources/Methods of Financing Funding Source(s) Prior Years FY 19120 FY 20121 FY 21122 FY 22123 FY 23124 FY 24125 Future Yrs Total Budget 501 - EU Outlay Capital ResE $ - $ 900,878 $ 1,351,000 $ 810,000 $ 542,700 $ 542,700 $ 400,000 I $ 4,547,278 Total Project Financing $ - $ 900,878 $ 1,351,000 $ 810,000 $ 542,700 $ 542,700 $ 400,000 $�$ 4,547,278 Section IV Operating Budget Impact Operating Cost or Prior Years FY 19120 FY 20121 FY 21122 FY 22123 FY 23124 FY 24125 Future Yrs Total (savings) Budget Personnel $ - $ - Other Operating Costs $ - $ - $ - $ - $ - Total Operating Impact $ - $ - $ - $ - $ - $ - Capital Improvement Program - Maintenance Fiscal Year 2020/21 Program Maintenance Project Title: 12 W Underground Maintenanc Munis Project Code: EUCP-21006 #44 Section (:Description District Nos: Project Length Ongoing Priority High Replacement of 12 kV underground infrastructure and other underground electric infrastructure maintenance as needed. Justification/factor driving project These ongoing maintenance efforts include, but are not limited to, replacement of failed/end-of-life cable; replacement of cable due to engineering study of predictive failure; installation/replacement of subsurface equipment with pad -mounted equipment to increase operability and reliability and other underground electric infrastructure maintenance as needed. Additional Information These ongoing maintenance efforts support the City Council adopted Lodi Electric Utility Strategic Plan goal of designing, operating and maintaining a distribution system to ensure safe, reliable electric service. Of the $1,102,900 FY 19/20 total, $1200 and $1700 (both Materials. Other) were carried forward. Section II Estimated Project Costs Expenditure Prior Years FY 19120 FY 20121 FY 21122 FY 22123 FY 23124 FY 24125 Future Yrs Total Estimate Budget Internal Staff $ - $ 172,500 $ 115,000 $ 115,000 $ 115,000 $ 115,000 $ 115,000 $ 747,500 Miscellaneous $ - $ 252,900 $ 464,497 $ 185,000 $ 185,000 $ 185,000 $ 185,000 $ 1,457,397 Contracts $ - $ 700,000 $ 750,000 $ 500,000 $ 500,000 $ 500,000 $ 500,000 $ 3,450,000 Total Capital Costs $ - $ 1,125,400 $ 1,329,497 $ 800',000$ 800,000 $ 800,000 $ 800,000 $ - $ 5,654,897 Section III Funding Sources/Methods of Financing Funding Source(s) Prior Years FY 19120 FY 20121 FY 21122 FY 22123 FY 23124 FY 24125 Future Yrs Total Budget 501 - EU Outlay Capital ResE $ - $ 1,125,400 $ 1,050,000 $ 800,0001 $ 800,000 I $ 800,000 I $ 800,000 $ 5,375,400 Total Project Financing $ - $ 1,125,400 $ 1,050,000 $ 800,000 $ 800,000 $ 800,000 $ 800,000 $ - $ 5,375,400 Section IV Operating Budget Impact Operating Cost or Prior Years FY 19120 FY 20121 FY 21122 FY 22123 FY 23124 FY 24125 Future Yrs Total (savings) Budget Personnel $ - $ - Other Operating Costs $ - $ - Total Operating Impact $ Capital Improvement Plan Fiscal Year 2020/21 Program Project Title: LED Streetlight Improvements Munis Project Code: EUCP-15008 #58 Section I: Description District Nos: Project Length 07/15 to 06/23 Priority High Replacement of post top luminaires with LED luminaires. Approximately 200 to 300 replacements are scheduled to take place annually through 2023. Justification/factor driving project LED Luminaires consume approximately 30% of the power of a High Pressure Sodium Luminaire for comparable illumination. They also last approximately 3 times as long without burning out. Consequently, this initiative will save energy and maintenance costs. A return on investment calculation was done at the outset of this project and it was estimated this project would pay provide a simple payback in approximately 10 years. Additional Information As part of the LED Streetlight Retrofit Program, approximately 5,400 cobra head fixtures have been replaced throughout the City. This project was completed in 2016. In addition, approximately 640 decorative fixtures have been replaced to date with an additional 300 scheduled for completion this year. Decorative fixtures will be replaced over a period of 5 years with a goal to replace approximately 200 to 300 per year. This project supports the City Council adopted Lodi Electric Utility Strategic Plan goal of deploying cost effective technology to improve reliability, customer service, and safety. Section II Estimated Project Costs Expenditure Prior Years FY 19120 FY 20121 FY 21122 FY 22123 FY 23124 FY 24125 Future Yrs Total Estimate Budget Internal Staff $ - $ 25,000 $ - $ 37,500 $ 37,500 $ 37,500 $ 37,500 $ - $ 175,000 Miscellaneous $ 165,533 $ 75,000 $ 120,924 $ 112,500 $ 112,500 $ 112,500 $ 112,500 $ - $ 811,457 Contracts $ 1,485,974 $ 1,485,974 Total Capital Costs $ 1,651,507 $ 100,000 $ 120,924 $ 150,000 $ 150,000 $ 150,000 $ 150,000 $ - $ 2,472,431 Section III Funding Sources/Methods of Financing Funding Source(s) Prior Years FY 19120 FY 20121 FY 21122 FY 22123 FY 23124 FY 24125 Future Yrs Total Estimate Budget 501 - EU Outlay Capital ResE $ 1,651,507 $ 100,000 $ 120,924 $ 150,0001$ 150,000 1 $ 150,000 1 $ 150,000 $ - $ 2,472,431 Total Project Financing $ 1,651,507 $ 100,000 $ 120,9241 $ 150,000 $ 150,000 $ 150,000 $ 150,000 $ - $ 2,472,431 Section IV Operating Budget Impact Operating Cost or Prior Years FY 19120 FY 20121 FY 21122 FY 22123 FY 23124 FY 24125 Future Yrs Total (savings) Estimate Budget Personnel $ - $ - Other Operating Costs $ - $ - Total Operating Impact $ - $ - $ - $ - $ - $ - $ - $ - $ - RESOLUTION NO. 2021-286 A RESOLUTION OF THE LODI CITY COUNCIL APPROVING FINAL BUDGET ADJUSTMENTS FOR FISCAL YEAR 2021; AND FURTHER APPROPRIATING FUNDS WHEREAS, the Lodi City Council adopted the Fiscal Year 2020/21 Financial Plan and Budget on June 3, 2020; and WHEREAS, the year-end reporting period for Fiscal Year 2020/21 has been completed; and WHEREAS, additional budgets for both Transit and Risk Management are necessary to address unbudgeted expenditure needs for Fiscal Year 2020/21; and WHEREAS, staff recommends the additional Fiscal Year 2020/21 appropriations in the Transit Fund of $67,579.70 (60454108.72399) for the student bus ride program and $74,495.49 in the Risk Management Fund for increased costs in temporary disability claims ($61,094.24 to 66525100.74032) and permanent disability claims ($13,401.25 to 66525100.74033); and WHEREAS, staff also recommends capital project budget adjustments in Electric Utility for the LED Streetlight Improvement Project ($45,924.43), the Underground Maintenance ($279,496.62) and Overhead Maintenance (reduce by $325,421.05) for a net zero budgetary increase. NOW, THEREFORE BE IT RESOLVED that the Lodi City Council does hereby authorize the additional Fiscal Year 2020/21 appropriations and adjustments totaling $142,075.19, as set forth above. Dated: November 3, 2021 -------------------- -------------------- I hereby certify that Resolution No. 2021-286 was passed and adopted by the City Council of the City of Lodi in a regular meeting held November 3, 2021, by the following vote: AYES: COUNCIL MEMBERS — Chandler, Hothi, Khan, Kuehne, and Mayor Nakanishi NOES: COUNCIL MEMBERS — None ABSENT: COUNCIL MEMBERS — None ABSTAIN: COUNCIL MEMBERS — None Yi' J� IFE US M I R City Clerk 2021-286