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Utility Committee Agenda and Packet 2021 08 31
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Utility Committee Agenda and Packet 2021 08 31
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City Council Records
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8/31/2021
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Boards Commissions Committees Records
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VI. Dashboards <br />Mr. Peterson referred to Page 8 stating this is the yearend Dashboard from 2020. <br />He said the take away is that revenues came in higher than anticipated, Operating <br />Expenses were right at budget and the biggest changes were shown in the water <br />plant operations and summarizing that there was about $100,000 for salaries and <br />$40,000 for sludge removal and lab fees that were not utilized. Mayor Pro Tern <br />Maloney asked for more detail on the salaries. Mr. Peterson said there were <br />several position vacancies that took a while to fill. A correction was included in the <br />2021 Budget to have a more accurate estimate for salary costs. <br />Councilmember Lipton asked if there was an explanation for higher commercial <br />user fees, given that many business were shut down. Mr. Peterson stated that any <br />reductions from COVID were offset by the outdoor irrigation resulting from the hot <br />and dry weather. Councilmember Lipton then asked about the tap fees being lower <br />than expected and Mr. Peterson responded that there was a slight decrease in <br />taps fees on the water side. Several developments did not move forward in 2020 <br />but there was also an unexpected expansion charge that reduced these impacts <br />to the Water Fund. This is shown as a greater impact on the wastewater fund that <br />will be discussed later. <br />Councilmember Lipton inquired about the nature of the central expense wide <br />charges in the Operating Expenses. Mr. Peterson said that is a little tougher to <br />nail down because of all the variety of central charges were slightly higher and it <br />wasn't a single line item that caused the overage. Councilmember Lipton asked if <br />that is a percentage of Operating Expenses or overhead out of the fund allocated. <br />Mr. Peterson said the function of Central charges is cover the overhead for the <br />operation of the entire utility. Mr. Watson reiterated what Mr. Peterson said but <br />added more detail citing line items for insurance costs, audit fees, investment fees, <br />bank fees and overall administrative costs. <br />Mr. Peterson continued with the Waste Water Fund on Page 10. As mentioned <br />during water, several development properties (Delo Lofts and North End <br />Developments) did not move forward in 2020. Councilmember Lipton asked if there <br />was a reduction in tap fees as related to budget amount from those developments <br />or is itjust a timing issue on when they come in. Mr. Peterson provide an overview <br />of how Planning, Public Works and Finance project tap fees. Staff believe these <br />developments will likely still to occur and it is more of a timing issue. Staff plan to <br />show these tap fee later in the rate model. <br />Mr. Peterson moved to the Operating Expenses outlining the largest shortage in <br />wastewater was related to Plant Operations in the line items for salaries, chemicals <br />and consulting services. The consulting services is not as low as it appears as <br />there were overage in Pretreatment program for consulting service that essential <br />offset. Councilmember Fahey asked for the reason behind the reduction in <br />chemicals. Mr. Peterson explained that chemical at the wastewater plant are used <br />on an as needed basis and the incoming water quality drives how much chemical <br />is used. <br />Mr. Peterson discussed the stormwater fund on page 11 explaining the reduction <br />in the percentage for the Storm Water Utility Engineering Fund appears greater <br />M <br />
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