2013-06-12 Special Budget Workshop Minutes (approved 10.1.13)

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4. No additional staff 5. Proposing reclassifications 6. Reclassify sr. financial analyst positions to power resource analyst 7. Reclassify work trainee to part-time office specialist Major Cost Categories CED's costs can be aggregated into: Maier New Projects • Acquire resources to help meet Renewable Portfolio Standards and AB 32 (carbon emission reduction requirements) • New program to inspect poles and create a database of required pole maintenance (GO 174) • Environmental work at substations to reduce risk of oil spills • Building new substation near Agua Mansa Power Plant • $1.2 million for engineering, planning, environmental studies • Lay-off of Magnolia Power Plant (in negotiations — may not be successful. If not, power costs will rise) Revenues • CED retail sales revenue projection is about $57.5 million after staff's proposed rate decrease • CED anticipates being able to meet recommended revenue requirements with proposed rates Additional Items • The following 2 items are proposed in addition to the City Manager's proposed budget (approved by City Manager after the budget was submitted to City Council) • $45,000 for rate design and appropriate level of financial reserve analysis • $25,000 for part-time project manager to oversee Agua Mansa Substation project (will probably need to extend this in FY 2014/15) Dr. Kolk answered questions from Council and provided additional information regarding the Electric Department budget proposal. At 7:28 p.m., Mayor Zamora adjourned the special meeting/budget workshop for a brief recess and at 7:52 p.m., the meeting reconvened with all members present as heretofore. 2013 JUNE 12 SPEC CC/SARDA/CUA/CPFA/CHA MEETING - 2 - 2013/14 2012/13 • Labor $5,554,533 $5,323,119 • Capital $2,541,113 $2,436,628 • Operations and Maintenance $4,808,701 $3,808,930 • Debt $4,399,163 $4,882,207 • GFT/Allocations $10,332,614 $9,483,847 • Power Supply* $34,397,749 $36,927,457 • TOTAL $62,033,873 $62,862,188 Power supply costs include Aqua Mansa Power Plant O&M and debt Maier New Projects • Acquire resources to help meet Renewable Portfolio Standards and AB 32 (carbon emission reduction requirements) • New program to inspect poles and create a database of required pole maintenance (GO 174) • Environmental work at substations to reduce risk of oil spills • Building new substation near Agua Mansa Power Plant • $1.2 million for engineering, planning, environmental studies • Lay-off of Magnolia Power Plant (in negotiations — may not be successful. If not, power costs will rise) Revenues • CED retail sales revenue projection is about $57.5 million after staff's proposed rate decrease • CED anticipates being able to meet recommended revenue requirements with proposed rates Additional Items • The following 2 items are proposed in addition to the City Manager's proposed budget (approved by City Manager after the budget was submitted to City Council) • $45,000 for rate design and appropriate level of financial reserve analysis • $25,000 for part-time project manager to oversee Agua Mansa Substation project (will probably need to extend this in FY 2014/15) Dr. Kolk answered questions from Council and provided additional information regarding the Electric Department budget proposal. At 7:28 p.m., Mayor Zamora adjourned the special meeting/budget workshop for a brief recess and at 7:52 p.m., the meeting reconvened with all members present as heretofore. 2013 JUNE 12 SPEC CC/SARDA/CUA/CPFA/CHA MEETING - 2 -