Consulting Engineer's Comprehensive Annual
Total Page:16
File Type:pdf, Size:1020Kb
REPORT | April 2017 CONSULTING ENGINEER’S COMPREHENSIVE ANNUAL REPORT Lafayette Utilities System Lafayette, Louisiana PREPARED BY: ECONOMICS STRATEGY STAKEHOLDERS SUSTAINABILITY www.newgenstrategies.net NewGen Strategies & Solutions, LLC, (NewGen) role as Consulting Engineer, has prepared the attached comprehensive annual report on the Utilities and Communications Systems for fiscal year 2016. Copies of the report shall be placed on file with the Chief Operating Officer by LCG and shall be open to inspection by any Owners of any of the Utility or Communications System Bonds. NewGen was supported by subcontractors and specific subject matter experts in the preparation of and analysis included in the report. Our partners in this effort included: Table of Contents Executive Summary SECTION 1 Scope of Review ............................................................................................. 1‐1 1.1 Requirements of Bond Ordinance ...................................................................... 1‐1 Utilities System – Article VII‐General Covenants of the Issuer ........................... 1‐1 Utilities System – Article VIII‐Consulting Engineer ............................................. 1‐2 1.2 Report Organization ............................................................................................ 1‐3 SECTION 2 Governance, Organization, Management, and Revenue Pledge ...................... 2‐1 2.1 Governance ......................................................................................................... 2‐1 2.2 Operating and Capital Budgeting ........................................................................ 2‐2 Organization ........................................................................................................ 2‐3 2.3 Shared Services ................................................................................................... 2‐3 2.4 Insurance ............................................................................................................ 2‐3 2.5 Legal .................................................................................................................... 2‐5 LCG and ILOT ....................................................................................................... 2‐5 Hurricane Gustav, 2008 ...................................................................................... 2‐5 2.6 Service Territory .................................................................................................. 2‐5 2.7 Management and Organization .......................................................................... 2‐6 Utilities System Organizational Structure ........................................................... 2‐6 Communications System Organization Structure ............................................... 2‐9 Pay Scale Review ............................................................................................... 2‐10 SECTION 3 Utilities System ............................................................................................... 3‐1 3.1 System Descriptions ............................................................................................ 3‐1 Customers ........................................................................................................... 3‐1 Historical Revenues ............................................................................................. 3‐1 Historical Utilities Debt Service Coverage Ratio ................................................. 3‐2 3.2 Rate Adjustments ............................................................................................... 3‐3 3.3 Operating and Capital Budget............................................................................. 3‐4 Utilities System’s Budget to Actual Performance ............................................... 3‐5 3.4 Utilities System Shared Services ......................................................................... 3‐7 3.5 In Lieu of Tax ....................................................................................................... 3‐7 3.6 Accounting and Financial Statements ................................................................ 3‐8 Balance Sheet...................................................................................................... 3‐8 Fund Balances ..................................................................................................... 3‐9 Income Statement ............................................................................................ 3‐10 Cash Flow .......................................................................................................... 3‐11 SECTION 4 Electric System ............................................................................................... 4‐1 4.1 Production and Power Supply ............................................................................ 4‐2 Doc Bonin Plant ................................................................................................... 4‐4 T. J. Labbé Plant .................................................................................................. 4‐7 Economics | Strategy | Stakeholders | Sustainability Table of Contents Hargis‐Hébert Plant ........................................................................................... 4‐10 Rodemacher Unit 2 ........................................................................................... 4‐12 Fuel Supply ........................................................................................................ 4‐25 Hydro Purchased Power .................................................................................... 4‐25 Capacity Contracts ............................................................................................ 4‐26 4.2 Transmission and Distribution .......................................................................... 4‐26 4.3 Advanced Metering Infrastructure ................................................................... 4‐27 4.4 Historical Capital Improvement Program ......................................................... 4‐27 4.5 Operations and Related Performance .............................................................. 4‐28 Reliability ........................................................................................................... 4‐28 Safety 4‐31 SCADA System ................................................................................................... 4‐31 System Security ................................................................................................. 4‐32 4.6 Regulatory and Environmental Compliance and Issues .................................... 4‐32 Permits and Approvals ...................................................................................... 4‐32 4.7 Contracts ........................................................................................................... 4‐33 4.8 Benchmarking ................................................................................................... 4‐34 Benchmarking Financial and Operating Statistics ............................................. 4‐36 4.9 Historical Financial Performance ...................................................................... 4‐37 Rate Structure ................................................................................................... 4‐38 Revenue Analysis............................................................................................... 4‐39 Expense Analysis ............................................................................................... 4‐42 Recovery of Costs .............................................................................................. 4‐43 4.10 Findings and Recommendations ....................................................................... 4‐43 SECTION 5 Water System ................................................................................................. 5‐1 5.1 Water Supply ....................................................................................................... 5‐1 5.2 Water Treatment and Production ....................................................................... 5‐2 5.3 Water Distribution and Storage .......................................................................... 5‐3 5.4 Advanced Metering Infrastructure ..................................................................... 5‐4 5.5 Historical Capital Improvement Program ........................................................... 5‐4 5.6 Operations and Related Performance ................................................................ 5‐5 5.7 Regulatory and Environmental Compliance and Issues ...................................... 5‐6 5.8 Contracts ........................................................................................................... 5‐10 5.9 Benchmarking ................................................................................................... 5‐11 Benchmarking Financial and Operating Statistics ............................................. 5‐13 5.10 Historical Financial Performance ...................................................................... 5‐15 Rate Structure ................................................................................................... 5‐15 Water Retail Revenue Statistics ........................................................................ 5‐17 Expense Analysis ..............................................................................................