CANBY UTILITY REGULAR BOARD MEETING JUNE 9, 2020 7:00 P.M. AGENDA Due to COVID-19 Pandemic, the Board of Directors and staff will be attending the meeting virtually. The public is invited to attend the meeting in person at Canby Utility’s office, with measures in place to comply with the Governor’s Executive Order regarding social distancing. I. CALL TO ORDER II. AGENDA Additions, Deletions or Corrections to the Meeting Agenda III. CONSENT AGENDA Approval of Agenda Approval of Regular Board Meeting Minutes of May 12, 2020 (pp. 1-3) Approval of Payment of Water and Electric Bills IV. CITIZEN INPUT ON NON-AGENDA ITEMS V. ELECTRIC AND WATER FUND OPERATING AND CAPITAL BUDGETS Recommended Fiscal Year 2021 Electric and Water Operating and Capital Budgets – Carol Sullivan, Finance Manager (pp. 4-38) VI. BOARD REPORT Chairman Comments Board Member Comments VII. STAFF REPORTS Customer Service Supervisor: COVID-19 Utility Billing Comparison (pp. 39-40) General Manager Updates VIII. ADJOURN
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CANBY UTILITY REGULAR BOARD MEETING JUNE 9, 2020 7:00 P.M.€¦ · 2020-06-09 · appreciation for the opportunity he was given to work for Canby Utility. Murphy shared his gratitude,
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CANBY UTILITY REGULAR BOARD MEETING
JUNE 9, 2020 7:00 P.M.
AGENDA
Due to COVID-19 Pandemic, the Board of Directors and staff will be attending the meeting virtually. The public
is invited to attend the meeting in person at Canby Utility’s office, with measures in place to comply with the Governor’s Executive Order regarding social distancing.
I. CALL TO ORDER
II. AGENDA Additions, Deletions or Corrections to the Meeting Agenda
III. CONSENT AGENDA Approval of Agenda Approval of Regular Board Meeting Minutes of May 12, 2020 (pp. 1-3) Approval of Payment of Water and Electric Bills
IV. CITIZEN INPUT ON NON-AGENDA ITEMS
V. ELECTRIC AND WATER FUND OPERATING AND CAPITAL BUDGETS Recommended Fiscal Year 2021 Electric and Water Operating and Capital Budgets – Carol Sullivan, Finance Manager (pp. 4-38)
VI. BOARD REPORT Chairman Comments Board Member Comments
VII. STAFF REPORTS Customer Service Supervisor: COVID-19 Utility Billing Comparison (pp. 39-40)
General Manager Updates
VIII. ADJOURN
CANBY UTILITY REGULAR BOARD MEETING MINUTES
MAY 12, 2020 Due to COVID-19 Pandemic, the Board of Directors and staff attended the meeting virtually. The public was
invited to attend the meeting in person at Canby Utility’s office, with measures in place to comply with the Governor’s Executive Order regarding social distancing.
Board Present: Chairman Hill; Members Brito, Wagner, Horrax, and Thompson
Staff Present: Daniel P. Murphy, General Manager; Barbara Benson, Board Secretary; Carol Sullivan, Finance Manager; Sue Arthur, Purchasing Agent; Dee Anne Wunder, Customer Service Supervisor; Doug Erkson, Operations Field Supervisor, and Jim Stuart, Operations Manager
Chairman Hill called the Regular Board Meeting to order at 7:04 p.m.
Chairman Hill presented the meeting agenda for consideration. He asked for any additions, deletions, or corrections to the meeting agenda and there were none.
Chairman Hill presented the consent agenda for approval. Member Brito made the *MOTION to approve the consent agenda, consisting of the meeting agenda, regular meeting minutes of April 14, 2020, payment of the electric and water department bills in the amount of $947,510.82. Member Wagner seconded, and the motion passed unanimously.
Chairman Hill asked for citizen input on non-agenda items and there was none.
Chairman Hill expressed appreciation for Jim Stuart’s contributions to Canby Utility. Stuart is leaving Canby Utility and he will be missed. Member Thompson asked General Manager Dan Murphy if he has started recruiting for Stuart’s replacement. Murphy stated that he is in the planning stage.
Operations Manager Jim Stuart reported that the construction of the three water main replacement projects is now complete. Stuart stated that the only remaining task is to submit the documents to our engineering firm for the as-built drawings. We expect the final invoice within a couple of weeks. The Board had no questions on the projects.
Stuart also stated that Friday would be his last day at Canby Utility. Stuart expressed his appreciation for the opportunity he was given to work for Canby Utility. Murphy shared his gratitude, on behalf of the management team, for his contributions to Canby Utility.
Finance Manager Carol Sullivan presented the second-quarter Executive Financial Summary. Sullivan reviewed the profit resulting from operations and capital contributions year-to-date six months ending December 31, 2019. The electric operating profit was $158,739, plus the capital
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Canby Utility Regular Board Meeting Minutes May 12, 2020 Page 2 of 3 contributions of $578,906, a total net income of $737,645. The water operating profit was $337,046, plus the capital contributions of $911,192, a total net income of $1,248,238. Sullivan then compared the operations with capital contributions to the budget. The electric fund was over budget $273,429. The year-to-date operating revenue is largely on budget. The operating expenses are overall largely on budget. The capital contributions are over budget 118.41%, mainly due to more hook-up fees and line extensions being built than budgeted. The change in net assets is 58.9% over budget, mainly due to capital contributions. The water fund was over budget $273,195. The year-to-date operating revenue is largely on budget. The total operating expenses are under budget 5.86%, mainly due to more labor being capitalized. The capital contributions are 19% over budget, mainly due to system development charge fees. The change in net assets is 28.02% over budget due to capital contributions and decreased expenditures. Member Thompson asked for an explanation of the capitalizing of labor. Sullivan explained the contractors, who are doing projects in Canby, pay for our labor expenses to perform work associated with the project, such as service hook-ups and inspections. That labor cost then becomes capitalized. Sullivan then reviewed the cash reserves summary. Sullivan stated that when she creates the budget, she has a reserve target. The electric reserves are below the year-end target by $538,576. The water reserves are over the year-end target by $556,958. Member Wagner asked about the year-end trending for the electric fund and its current status, noting that the report only reflects the first six months of the fiscal year. Sullivan did not have that information available for this meeting but she explained that she uses the Local Government Investment Pool (LGIP) fund as a gauge to determine that the reserves are doing well. Murphy added that through the first six months, we are pretty close to being on budget for expenses and revenues. He said that he anticipates we will exceed our reserves target, being only $538,576 under target at six months. Discussion ensued regarding the capital expenses, revenue sources, and the overall impact on the reserves. Customer Service Supervisor Dee Anne Wunder reported on the COVID-19 utility billing impacts for February, March, and April 2019, compared to the same months in 2020. Her report analyzed seven billing-related activities: 1) the number of statements mailed, 2) the number of delinquent notices mailed, 3) the total dollar amount delinquent accounts, 4) the average delinquent account amount owed, 5) the percentage of delinquent accounts, 6) the combined total of bank deposits, system development charges, and miscellaneous payments received, and 7) the total number of payments made. Wunder explained what each comparison represented. Many customers have changed their payment methods due to the office being closed to walk-in traffic. Wunder also shared data comparing April 2019 to April 2020 that was not in her written report regarding the methods customers have been using to pay their utility bill. She said that 616 payments were made at the customer service counter last year and none this year. There were 1,555 website payments made last year compared to 1,958 this year. There were 1,197 payments made by telephone last year compared to 293 this year. Wonder mentioned this information is
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Canby Utility Regular Board Meeting Minutes May 12, 2020 Page 3 of 3
very preliminary since it only reflects the first month of the closure due to the pandemic. Chairman Hill expressed his appreciation for the information Wunder provided. Wunder will continue to provide this report each month until further notice.
General Manager Dan Murphy reported that he had named Operations Field Supervisor Doug Erkson as the Interim Operations Manager effective May 15. Murphy said that he would provide support to Erkson during this time as he takes on additional responsibilities.
Murphy reported on the May 13 town hall meeting aimed at informing the community about a new project that Clackamas Soil and Water Conservations District launched last fall. The town hall meeting will focus on their Molalla River drinking water project. This grant-funded project aims to better understand the issues affecting drinking water quality for those who depend on the Molalla for its drinking water. The project focuses primarily on the municipal intakes for Canby, Molalla, and Colton. The project assesses factors across the entire Molalla River watershed above Canby’s water intake to determine the current situation and what is needed to protect the water supply. Murphy plans to attend the meeting. Murphy said that the meeting could provide insight into the community’s feelings about our source water.
Murphy also reported that Canby Utility will be closed on May 25 in observance of Memorial Day.
Member Wagner made the *MOTION to adjourn the meeting. Member Thompson seconded, and the motion passed unanimously.
There being no further business, the meeting was adjourned at 7:31 p.m.
Robert Hill, Chairman David Horrax, Member
Jack Brito, Member Melody Thompson, Member
Todd Wagner, Member Barbara Benson, Board Secretary
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MEMORANDUM June 5, 2020
TO: Chairman Hill, Member Brito, Member Wagner, Member Horrax, and Member Thompson
FROM: Carol Sullivan, Finance Manager
SUBJECT: Fiscal Year 2021 Operating and Capital Budget Highlights
Suggested Motion: Motion that the Fiscal Year 2021 Electric and Water Operating and Capital Budgets be approved as presented.
Recommendation: That the board approves the Fiscal Year 2021 Electric and Water Operating and Capital Budgets as presented.
Summary: The proposed Fiscal Year 2021 operating and capital budgets are attached. In brief:
Electric: The budget revenue is based on FY 2020 actuals with a 3% growth factor applied to most customer classes. Operating expenditures have increased mainly due to increased power costs due to projected increased usage, depreciation, and labor expenses. Non-operating revenues are increasing due to the sale of the land to the Water department. Overall electric reserves will decrease due to the Combined Service Center Phase 2 project.
Water: The budget revenue is based on a low consumption year with an increased meter count for expected growth. Operating expenditures have increased mainly due to depreciation, the annual fee adjustment for management of the Water Treatment Plant (WTP), and a tracer study for the Clearwell reservoir at WTP. Overall water reserves will decrease due to purchase of the land from the electric fund for the future water treatment plant.
Personnel costs: The budget reflects an increase of 3.8% to all payroll costs. This increase is mainly due to wages increases. A table of personnel costs follows the electric and water executive summaries.
I will present to the Board an overview of revenues, expenses, capital, and cash reserves from the Executive Summary. Staff and I will be available to answer any questions.
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Increase % Increase(Decrease) (Decrease)
FY21 Budget FY20 Budget FY21 - FY20 FY21 - FY20
Total Electric Sales 13,372,633$ 12,914,633$ 458,000$ 4%
Total Other Electric Energy Revenues 272,460 254,486 17,974 7%
TOTAL OPERATING EXPENSES (13,482,315) (12,958,715) 523,600 4%
OPERATING INCOME 162,778 210,404 (47,626) -23%
Total Non-Operating Revenues & Expenses 3,140,526 352,376 2,788,150 89%
Total Capital Contributions 505,043 530,100 (25,057) -5%
Change in Net Assets 3,808,347 1,092,880$ 2,715,467$ 71%
Cash and Investments Estimate, June 30, 2020 9,912,786
Cash Used For Capital Purchases (10,876,988)
Add Back Depreciation 1,059,361
Basis of Asset Sold 267,521
Total Estimated End Of FY21 Cash & Investments 4,171,027$
Notes:
The overall increase in revenues is mainly due to new server farm sales.
Operating income is down mainly due to the increased expenses.
The net amount of money we expect to bring in is increased mainly due to the sale of land.
Estimated cash on hand.
Capital Budget for the year.
Non-cash item in the operating expense budget so need to add it back to cash on hand.
Canby Utility - Electric Executive Summary of FY 21 Budget
The sale of future WTP land to the water department is the driver for this increase.
FY21 is based on FY20 actuals with a three percent growth factor.
FY21 is based on history and BPA's remaining contract amount for the conservation program.
The overall increase in expenses is mainly due to increased power costs, depreciation, and labor expenses.
The gain on the sale of land does not include the basis of the property, but it is part of the sales price so we need to add that cash back.
This is what we expect to have in CASH RESERVES at year end, 6/30/21.
Estimated 85 new residential meter connects, 3 Subdivisions, 1 Apartment complex, and 2 Commercial/Industrial projects scheduled for completion during the fiscal year.
DESCRIPTION
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Increase % Increase(Decrease) (Decrease)
FY21 Budget FY20 Budget FY21 - FY20 FY21 - FY20
TOTAL WATER USAGE SALES 3,322,000$ 3,260,000$ 62,000$ 2%
TOTAL OPERATING EXPENSES (3,637,157) (3,450,839) 186,317 5%
OPERATING INCOME (LOSS) (315,157) (190,839) (124,317) 65%
Total Non-Operating Revenues & Expenses 6,340 89,912 (83,572) -93%
Total Capital Contributions 1,421,851 2,108,453 (686,602) -33%
Change in Net Assets 1,113,035 2,007,526$ (894,491)$ -45%
Cash and Investments Estimate, June 30, 2020 5,361,312
Cash Used For Capital Purchases (4,798,526)
Principle Payments on Water Bonds (415,532)
Add Back Depreciation 769,200
Total Estimated End Of FY21 Cash & Investments 2,029,489$ This is what we expect to have in CASH RESERVES at year end, 6/30/21.
Non-cash item in the operating expense budget so we need to add it back to cash on hand.
2017 & 2014 Bond principle payments.
Estimated cash on hand.
Capital Budget for the year.
Operating income is decreased due to the increased expenses.
The change in net assets has decreased over the prior budget due to the contributed capital projects, some projects budgeted in prior year have carried over to FY21 .
Estimated 95 new Residential meter connects, 3 Subdivisions, 1 Apartment complex, and 2 Commercial/Industrial projects scheduled for completion during the fiscal year.
The main driver for the decrease here is lower interest from lower cash balances due to land purchase.
Increased meter count for expected growth and based use on a low consumption year.
Canby Utility - Water Executive Summary of FY 21 Budget
The overall increase in expenses is mainly due to depreciation, the annual fee adjustment for management of the Water Treatment Plant, and a tracer study for the Clearwell reservoir.
DESCRIPTION Notes:
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Electric % of Total Water % of Total % of Total Category System Compensation System Compensation Combined Compensation
OPERATING REVENUESResidential Sales 6,659,000$ 6,322,484$ 6,477,000$ 182,000$ 2.8% 3% growth factor of FY 20 actualUnbilled Revenue - 264 - - N/A Unknown Until FY Year-EndGreen Power Sales 12,022 12,135 12,022 - 0% Based April 2020 salesSmall Commercial 1,388,000 1,355,324 1,055,000 333,000 32% 3% growth factor of FY 20 actualLarge Commercial 2,907,000 2,734,525 2,825,000 82,000 3% 3% growth factor of FY 20 actualIndustrial 2,023,000 2,100,375 2,161,000 (138,000) -6% 3% growth factor of FY 20 actualCity Street Lighting 43,611 43,080 43,611 - 0% Based April 2020 salesMunicipal 166,000 163,622 167,000 (1,000) -1% Based on FY20 actualCanby Utility 174,000 171,705 174,000 - 0% Based on FY20 actual
Total Electric Sales 13,372,633 12,903,514 12,914,633 458,000 4%
NSF Check Charge 1,188 1,056 1,584 (396) -25% Estimate three a monthReconnect Fees 5,760 6,030 3,840 1,920 50% Estimated twelve a monthDoor Hanger Fees - 25 - - N/A Mailing Disconnect Notices, new policyAccount Set-up Fees 30,000 30,050 26,508 3,492 13% Average of past yearFailed Payment Arrangement 600 725 600 - 0% Estimate two a monthDisconnect Notice Fee 58,200 58,475 60,650 (2,450) -4% Based on July 2019 thru February 2020BPA Conservation Rate Credit 176,712 64,476 161,304 15,408 10% Contract amount
Total Other Electric Energy Revenues 272,460 160,837 254,486 17,974 7%
TOTAL OPERATING REVENUES 13,645,093 13,064,351 13,169,119 475,974 4%
OPERATING EXPENSESBoard of Directors 14,287 4,468 13,305 982 7% See Departmental PageExecutive 268,286 247,647 268,222 64 0% See Departmental PageAdministrative 263,077 265,285 250,542 12,535 5% See Departmental PageCustomer Service 600,599 628,198 700,155 (99,556) -14% See Departmental PageFinance 10,425,626 9,775,788 9,957,037 468,589 5% See Departmental PageOperations 497,785 395,097 482,544 15,241 3% See Departmental PageDistribution 1,364,453 820,012 1,255,820 108,633 9% See Departmental PageRisk Management 48,202 33,881 31,090 17,112 55% See Departmental Page
TOTAL OPERATING EXPENSES 13,482,315 12,170,376 12,958,715 523,600 4%
OPERATING INCOME (LOSS) 162,778 893,975 210,404 (47,626) -23%
OPERATING MARGIN 1% 7% 2%
NON-OPERATING REVENUES & EXPENSES
Rental Lights 34,392 34,395 34,392 - 0% Based on April 2020 salesRental Lights Expenses - - - - N/A N/ASt. Light Maintenance Sales 15,600 14,578 15,924 (324) -2% Based on prior yearsMaterial Sales - - - - N/A N/ABilled for Dig In's 3,996 12,548 3,132 864 28% Based on prior yearsCustom Work Sales - - - - N/A N/APublic St. Lights Sold 39,996 40,304 39,996 - 0% Based on prior yearsMisc. Other Sales 21,600 25,467 21,600 - 0% Rent of office building from Water fund
Canby UtilityFY 21 Budget
Statement of Operations and Changes In Net Assets - Electric
Total Capital Contributions 505,043 535,289 530,100 (25,057) -5%
Change in Net Assets 3,808,347$ 1,726,122$ 1,092,880$ 2,715,467$ 71%
Cash Flow:
Cash and Investments Estimate, June 30, 2019 9,912,786$
Cash Used For Capital Purchases (10,876,988) Change in Net Assets 3,808,347
Add Back Depreciation 1,059,361
Basis of Asset sold 267,521
Net Cash Generated/(Used) (5,741,759)
Cash and Investments Estimate, June 30, 2020 4,171,027$
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LaborProject Name Description of Project Labor Materials Transportation Overheads Contractor Project Cost
Charges 69.74% Costs
Executive - ProjectsCanby Utility Combined Service Center Phase 2 Build out the rest of Building A, office space. Build out the rest of site,
Building B and C, and remainder of half street improvements. Build out employee parking lot.
$ - $ - $ - -$ 10,085,517$ $ 10,085,517
Finance - Projects75% of New Utility Software costs 25% Water Fund
Our current software has given us some issues during operating changes, staff wants to look into what is available to see if there a product that will better suit our needs to be more efficient.
- - - - 110,271 110,271
Operations & Distribution - Capital Equipment
MT - 1/WT3 Meter Tester Replacement of antiquated Field Meter Tester - - - - 13,500 13,500
Small Tools and Equipment - - - - 15,000 15,000
Operations & Distribution - Projects
Feeder Extension (carryover) Westcott Feeder 4, Extension along south Ivy approx. 2100 ft. This includes reconductoring to accommodate new subdivisions and City sanitary pump station.
12,967 114,252 5,315 9,043 - 141,577
Build New Feeder G/Feeder 4 Intertie. (carryover)
Provides additional source to Pioneer Industrial Park - 8,800 - - 32,000 40,800
Legal 8,500 3,598 6,000 2,500 42% Average of past five yearsOther Consultants - 2,709 15,000 (15,000) -100% N/AMarketing 450 413 844 (394) -47% Chamber dues
Total Consulting/Contract 8,950 6,720 21,844 (12,894) -59%
APPA 8,500 7,084 7,500 1,000 13% Estimated increase over FY20LOC 500 500 500 - 0% Same as prior yearsLGPI 814 775 800 14 2% From trade organizationOMEU 17,000 16,150 17,000 - 0% Estimated increase over FY20SDAO 1,111 1,277 1,800 (689) -38% Based on last year actualPNUCC - - - - N/A N/ANWPPA 9,000 8,055 10,000 (1,000) -10% Estimated increase over FY20PPC 8,600 8,351 8,500 100 1% Estimated increase over prior yearICMA - - - - N/A N/A
Total Trade Organizations 45,525 42,192 46,100 (575) -1%
Training 720 350 720 - 0% Same as prior budgetTransportation 5,220 1,501 5,220 - 0% Same as prior budget
Total Transportation & Training 5,940 1,851 5,940 - 0%
Total Executive Expense 268,286$ 247,647$ 268,222$ 64$ 0%
higherUtilities 9,600 9,022 7,244 2,356 33% Based on current history with an increaseComputer Supplies 3,000 2,529 3,750 (750) -20% Closer to actualTelephone 29,100 23,998 25,800 3,300 13% New modems for new meters-Verizon
Total Departmental 119,671 132,587 110,331 9,340 8%
Net Payroll & Employer Paid Expenses 1,187,264 644,523 1,086,272 100,992 9% 3.0% COLA, spot adjustments, and inc'd exp's
Dues, Fees & Subscriptions - - - - N/ASafety 35,000 35,257 27,100 7,900 29% Based on FY '20, 8 month actuals.Office Supplies 205 190 205 - 0% Annual extra print materialsMaintenance of Substations 15,000 9,709 12,000 3,000 25% Based on proposed work.Shop & Work Equipment Expenses 15,000 23,637 13,500 1,500 11% Based on Current ActualsPGE Pole Contract Agreement 5,000 3,213 1,550 3,450 223% Based on Current ActualsMaintenance of Overhead Lines 26,000 17,446 8,000 18,000 225% Based on Current ActualsMaintenance of Underground Lines 25,000 47,616 25,764 (764) -3% Based on Current ActualsMaintenance of Line Transformers 6,000 5,345 5,245 755 14% Based on Current ActualsMaintenance of Electric Meters 5,000 21,506 5,000 - 0% Based on projected future needsMaintenance Supervision & Engineering 3,000 103 3,000 - 0% Based on Current Actuals
Total Departmental 135,205 164,022 101,364 33,841 33%
Infra-Red Scanning - - - - N/APole Inspection & Treatment - - - - N/ATree Trimming 10,000 - 50,000 (40,000) -80% Trouble TreeEngineering 10,000 - 1,200 8,800 733% Based on current Actuals plus future need.Metering - - - - N/AOther Expenses - - - - N/AArc-Flash Hazard Assessment - - - - N/APaving/Road 5,000 150 - 5,000 N/A Based on projected future needs (Contract as Needed)
Total Consulting/Contract 25,000 150 51,200 (26,200) -51%
Training 9,639 5,925 9,639 - 0% New and current Employee Training.Transportation 7,345 5,392 7,345 - 0% New and current employee Training.
Total Transportation & Training 16,984 11,317 16,984 - 0%
Total Distribution Expense 1,364,453$ 820,012$ 1,255,820$ 108,633$ 9%
NON-OPERATING REVENUES & EXPENSESMaterial Sales - - - - N/A Unknown, not a usual occurrenceBilled for Dig In's 840 - 912 (72) -8% Average of past ten yearsCustom Work Sales - - - - N/A Unknown, not a usual occurrenceMisc. Other Sales - 5,400 - - N/A Unknown, not a usual occurrenceInspection Fees 19,200 17,448 37,488 (18,288) -49% Average of past five yearsSewer Billing Fees - City - - - - N/A N/A
Canby UtilityFY 21 Budget
Statement of Operations and Changes In Net Assets - Water
Statement of Operations and Changes In Net Assets - Water
Material Sales Costs - - - - N/A Unknown, not a usual occurrenceMisc. Other Costs and Expenses - - - - N/A Unknown, not a usual occurrenceInspection Fees Cost (19,200) (18,160) (37,488) 18,288 -49% Average of past five yearsInterest Income 52,559 120,756 127,671 (75,112) -59% 1.76% applied to estimated cash on handGain On Disposition of Property 3,514 1,296 20,500 (16,986) -83% Sale of unit 19 Ford D-350 Super CabLoss On Disposition of Property - (12,496) - - N/A UnknownOther Deductions - - - - N/A N/AInterest Expense (50,573) (65,439) (59,171) 8,598 -15% Per amortization schedules
Total Non-Operating Revenues & Expenses 6,340 48,805 89,912 (83,572) -93%
Net Income/(Loss) before CapitalContributions (308,817) 550,519 (100,927) (207,889) 206%
Capital ContributionsHook-up Fees 32,870 120,624 34,573 (1,703) -5% 95 Residential meter connects
SDC Fees 627,474 396,797 671,880 (44,406) -7% SDC's for the above contributed capital
Total Capital Contributions 1,421,851 1,116,401 2,108,453 (686,602) -33%
Change in Net Assets 1,113,035$ 1,666,920$ 2,007,526$ (894,491)$ -45%
Cash Flow:
Cash and Investments Estimate, June 30, 2019 5,361,312$
Cash Used For Capital Purchases (4,798,526) Change in Net Assets 1,113,035
Add Back Depreciation 769,200
Principle Payments on Water Bonds (415,532)
Net Cash Generated/(Used) (3,331,824)
Cash and Investments Estimate, June 30, 2020 2,029,489$
25
LaborProject Name Description of Project Labor Materials Transportation Overheads Contractor Project Cost
Charges 73.11% Costs
Executive - ProjectsRisk and Resilience Assessment (RRA) and Emergency Response Plan (EPR)
Per the American Water Infrastructure Act, all utilities serving over 3,300customers are required to prepare a RRA and incorporate this study's findingsinto their ERP. Canby Utility is required to complete the RRA by 6/30/2021 andthe ERP six months later. The ERP will be in FY22 and is estimated to cost$25,000.
-$ -$ -$ -$ 75,000$ 75,000$
Water Management and Conservation Plan (WMCP)
Canby Utility completed a WMCP in 2011. The Oregon Health Authority issued afinal order and update of the WMCP is due October 20, 2020.
- - - - 30,000$ 30,000
Willamette Water Treatment Plant Purchase land from the electric fund for the future water treatment plant. - - - - 3,200,000$ 3,200,000
Finance - Projects25% of New Utility Software costs 25% Electric Fund
Our current software has given us some issues during operating changes, staff wants to look into what is available to see if there a product that will better suit our needs to be more efficient.
- - - - 36,757 36,757
Operations & Distribution Capital Equipment Replacement Of Unit 19 as per Capital Replacement Schedule
Equipment Replacement - - - - 50,000 50,000
Hydraulic Breaker for Backhoe Replacement for Non repairable Breaker (OLD) - - - - 16,000 16,000
Small Tools - 10,000 10,000
Operations & Distribution - ProjectsWater Main Replacement as directed by the Water Master Plan
Replacement of approximately 920' of 12" on N. Pine St. Replacement of approximately 500' of 8" on NW 12th St.
6,600 222,627 1,080 4,825 164,868 400,000
Valve Can replacements in City streets Canby Utility will need to replace damaged / deteriorated valve cans. - - - - 15,000 15,000
13th Ave Reservoir Inlet Connection Per 2019 water system survey, installation of inlet will allow for increased water flow and better water quality. Currently only one pipe for both fill and discharge, this second pipe will allow for simultaneous fill an discharge.
7,200 - 3,600 5,264 143,936 160,000
WTPCapital Expenditure Modifications Capital Draw-down upon request Per VEOLIA WATER O&M Service Agreement. - - - - 25,000 25,000
CONTRIBUTED CAPITAL
New Projects 3 Subdivisions, 1 Apartment Complex, 2 Commercial/Industrial Projects Scheduled for Completion in the FY.
46,506 - - 34,001 681,000 761,507
Various Residential Connects Estimated 95 connects / Meter sets @ $346.00 each. 3,550 11,210 1,911 2,595 - 19,266
Total 63,856$ 233,837$ 6,591$ 46,685$ 4,447,561$ 4,798,530$
Water SystemFY 21 Capital Budget
Canby Utility
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Procedure 520Attachment 1
Cash Reserve Calculation
The cash reserve calculations are targeted end of year balances at June 30, 2021.
ReserveDollars Basis
Annual O&M Expenditures (excluding depreciation) 2,867,957$ 365 120 942,890$ Budget 2021Rate Base Factor for Catastrophic Event Assets Depre Depre/Assets Assumption
35,189,827 11,956,127 34.0% 2.0% 703,797 March 2020 Balance Sheet w/ WIPDebt Service Highest Payment 10/1/2020 4/1/2021
Series 2014 $213,551 $9,139Series 2017 $201,981 $15,048
$415,532 $24,187 - Water Revenue Bonds, Series 2014 & 2017 Reserves 393,900 Bond requirements, to be moved to
Project Reserve when the bonds are paid off.
Capital Improvements - Pushed out till 2021 2011-2015 $2,420,000 20.0% 484,000 484,000 1/5 of 5 year CIPVehicle/Equipment Replacement Program 24,789 Rotation Schedule
Total Before Project Reserve 2,549,376
Project Reserve (519,888)
In order to start the initial stages of the WTP project, transfer ownership of land for future WTP to Water Department from Electric Department, the need to temporarily use other reserves is necessary.
Targeted Cash Reserve 2,029,489$
Minimum Cash Reserve $2,000,000 Over / (Under) minimum 29,489$
Canby UtilityCash Reserve Procedure
Not funding due to Bonds require a reserve dollar amount.
Water Input Pro-rate Policy
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FY21 FY20Categories Board of Customer Risk Total by Total by $ Change % Change
Directors Executive Administrative Service Finance Operations Distribution WTP Mgt Category Category FY20 vs. FY19 FY20 vs. FY19
Rent 21,600 30,679 21,600 - 0%Water Dept rents space from Electric for New bldg
Maint. Of Office Equipment 2,537 524 1,965 572 29% Neopost Equipment costsMaint. Of Bldgs. & Grounds 22,993 18,813 21,098 1,895 9% Sprinkler, Generator, Landscape, HVAC costs highUtilities 3,600 3,396 2,800 800 29% Based on current history with an increaseComputer Supplies 996 838 1,250 (254) -20% Closer to actualTelephone 11,784 9,306 10,400 1,384 13% New modems for new meters-Verizon
Total Consulting/Contract 875 5,957 1,513 (638) -42%
Training 15 6 360 (345) -96% Spring trainingTransportation 2,160 1,879 2,697 (537) -20% 3C conf cancelled/ spring trng
Total Transportation & Training 2,175 1,885 3,057 (882) -29%
Customer Info - - - - N/ACustomer Relations 650 - 650 - 0% same as last yearSchool/Community - - - - N/AShare the Warmth 10,000 10,000 10,000 - 0% same as last yearWater Promotion 2,500 975 800 1,700 213% current year total (2,600) increased
Total Programs 13,150 10,975 11,450 1,700 15%
Total Customer Service Expenses 147,705$ 170,526$ 183,039$ (35,334)$ -19%
Safety 8,000 9,420 8,000 - 0% Based on current contractOffice Supplies 120 130 120 - 0% Based on current budget.Shop and Work Equipment Expenses 6,000 6,007 6,000 - 0% Based on current budget.Maintenance of Distribution Mains 20,000 9,830 10,000 10,000 100% Increase based on new maintenance program.Maintenance of Water Services 9,450 5,946 9,450 - 0% Based on current budget.Maintenance of Water Meters 6,000 2,943 6,000 - 0% Based on current budget.Maintenance of Water Hydrants 10,000 6,566 10,000 - 0% Based on current budget.Equipment Rental - - - - N/AMaintenance Supervision & Engineering 4,200 206 - 4,200 N/A Based on FY '20 YTD.(Contract as Needed)
Total Departmental 65,620 42,426 51,420 14,200 28%
Total Risk Management Expenses 36,564$ 29,618$ 28,900$ 7,664$ 27%
Canby UtilityFY 21 Budget
Risk Management - Water
38
MEMORANDUM June 2, 2020
TO: Chairman Hill, Member Brito, Member Wagner, Member Horrax, and Member Thompson
FROM: Dee Anne Wunder, Customer Service Supervisor
SUBJECT: COVID-19 Utility Billing Comparison
The attached report compares activity of payments and delinquencies for the months of March, April, and May 2019 to the same months in 2020. I will update the comparisons monthly to monitor impacts from the COVID-19 pandemic.
I will be available to answer questions during the Board Meeting.
1265 S.E. 3rd Avenue ∙ PO Box 1070 ∙ Canby ∙ OR 97013 ∙ Tel: 503-266-1156 ∙ Fax: 503-263-8621