NOTICE OF REGULAR MEETING CITY OF ALAMEDA PUBLIC UTILITIES BOARD Alameda Municipal Power- Service Center 2000 Grand Street (Corner of Grand and Clement Avenue) Alameda, CA 94501
Monday, March 15, 2021 at 6:00 P.M. Notice: Due to Governor Executive Order N-29-20, Board members can attend the meeting via teleconference. Members of the public can follow the meeting via web (https://bit.ly/3pEUtPq) and teleconference (+1 510-358-3865 Conference ID: 589 206 455#) and address the Public Utilities Board during the meeting via email ([email protected]) or via live comments during the web/teleconference. For those participating via the web application, attendees can use the raise hand icon to indicate they are requesting the opportunity to make live comments. For those attendees who are calling in via telephone only, the Clerk will advise them when to unmute themselves. Comments submitted during the meeting will be read into the record (subject to speaker time limits). Comments submitted prior to the meeting will be included in the meeting record. Comments submitted through the Microsoft Teams meeting chat window will not be monitored. Any requests for reasonable accommodations from individuals with disabilities should be made by contacting Alameda Municipal Power at [email protected].
The Alameda Municipal Power Service Center will be NOT be open to the public during the meeting. 1. ROLL CALL
2. ORAL COMMUNICATIONS - NONAGENDA (PUBLIC COMMENT) Members of the public are invited to address the Board on any subject related to the activities of Alameda Municipal Power not otherwise appearing on the Agenda.
3. SPECIAL PRESENTATION
4. CONSENT CALENDAR Consent Calendar items are considered routine and will be enacted, approved or adopted by one motion unless a request for removal for discussion or explanation is received from the Board or a member of the public.
4.I. A. Minutes Of The February 23, 2021 Regular Meeting Of The City Of Alameda Public Utilities Board
Documents:
CONSENT CALENDAR ITEM A.PDF
4.II. B. Listing Of Bills Paid – February 2021
Documents:
CONSENT CALENDAR ITEM B.PDF
4.III. C. Financial Report – January 2021
Documents:
CONSENT CALENDAR ITEM C.PDF
4.IV. D. Treasurer’s Report For The Month Ending January 31, 2021
Documents:
CONSENT CALENDAR ITEM D.PDF
4.V. E. By Motion, Approve Amendment #3 To Professional Services Agreement PS 09-15- 01 With Ecology Action To Extend The Term Of The Contract To December 31, 2021
Documents:
CONSENT CALENDAR ITEM E.PDF
4.VI. F. By Motion, Accept The Independent Audit Of Alameda Municipal Power’s Financial Position For The Fiscal Years Ended June 30, 2020 And June 30, 2019, And Its Associated Reports
Documents:
CONSENT CALENDAR ITEM F.PDF
5. AGENDA ITEMS
5.I. A. For Information Only, Summary Of 10-Year Financial Pro Forma Analysis
Documents:
AGENDA ITEM A.PDF
6. GENERAL MANAGER'S REPORT
6.I. A. General Manager’s Report – February 2021
Documents:
GENERAL MANAGERS REPORT.PDF
7. COUNCIL COMMUNICATIONS
8. BOARD COMMUNICATIONS
9. ORAL COMMUNICATIONS - NON AGENDA (PUBLIC COMMENT) Members of the public are invited to address the Board on any subject related to the activities of Alameda Municipal Power not otherwise appearing on the Agenda.
10. ADJOURNMENT
l Each member of the public who wishes to speak is afforded up to 5 minutes per agenda item, which may be increased or limited by the presiding officer. l Sign language interpreters will be available on request. Please contact Hayley Wise at 748-3908 or 522-7538 (TDD number) or EMAIL at least 72 hours before the meeting to request an interpreter. l Accessible seating for persons with disability (including those using wheelchairs) is available. l Minutes of the meeting are available in enlarged print. l Audiotapes of the meeting are available upon request. l Please contact Hayley Wise at 748-3908 or 522-7538 (TDD number) or EMAIL at least 72 hours prior to the meeting to request agenda materials in an alternative format, or any other reasonable accommodation that may be necessary to participate in and enjoy the benefits of the meeting.
Documents related to this agenda are available for public inspection and copying at Alameda Municipal Power’s Service Center – 2000 Grand Street during office hours.
Know Your Rights Under the Sunshine Ordinance
Government’s duty is to serve the public, reaching its decisions in full view of the public.
Commissions, boards, councils and other agencies of the City of Alameda exist to conduct the citizen of Alameda’s business. This ordinance assures that deliberations are conducted before the people and that City operations are open to the people’s review.
For more information on your rights under the sunshine ordinance or to report a violation of the ordinance, contact the Open Government Commission:
l 2263 Santa Clara Avenue Room 380 Alameda, CA, 94501 l Phone: 510-747-4800 l Fax: 510-865-4048 l EMAIL CITY CLERK LARA WEISIGER
In order to assist the City’s efforts to accommodate persons with severe allergies, environmental illnesses, multiple chemical sensitivity or related disabilities, attendees at public meetings are reminded that other attendees may be sensitive to various chemical based products. Please help the City accommodate these individuals.
[Section 2-91.13 (d) - Sunshine Ordinance] NOTICE OF REGULAR MEETING CITY OF ALAMEDA PUBLIC UTILITIES BOARD Alameda Municipal Power- Service Center 2000 Grand Street (Corner of Grand and Clement Avenue) Alameda, CA 94501
Monday, March 15, 2021 at 6:00 P.M. Notice: Due to Governor Executive Order N-29-20, Board members can attend the meeting via teleconference. Members of the public can follow the meeting via web (https://bit.ly/3pEUtPq) and teleconference (+1 510-358-3865 Conference ID: 589 206 455#) and address the Public Utilities Board during the meeting via email ([email protected]) or via live comments during the web/teleconference. For those participating via the web application, attendees can use the raise hand icon to indicate they are requesting the opportunity to make live comments. For those attendees who are calling in via telephone only, the Clerk will advise them when to unmute themselves. Comments submitted during the meeting will be read into the record (subject to speaker time limits). Comments submitted prior to the meeting will be included in the meeting record. Comments submitted through the Microsoft Teams meeting chat window will not be monitored. Any requests for reasonable accommodations from individuals with disabilities should be made by contacting Alameda Municipal Power at [email protected].
The Alameda Municipal Power Service Center will be NOT be open to the public during the meeting. 1. ROLL CALL
2. ORAL COMMUNICATIONS - NONAGENDA (PUBLIC COMMENT) Members of the public are invited to address the Board on any subject related to the activities of Alameda Municipal Power not otherwise appearing on the Agenda.
3. SPECIAL PRESENTATION
4. CONSENT CALENDAR Consent Calendar items are considered routine and will be enacted, approved or adopted by one motion unless a request for removal for discussion or explanation is received from the Board or a member of the public.
4.I. A. Minutes Of The February 23, 2021 Regular Meeting Of The City Of Alameda Public Utilities Board
Documents:
CONSENT CALENDAR ITEM A.PDF
4.II. B. Listing Of Bills Paid – February 2021
Documents:
CONSENT CALENDAR ITEM B.PDF
4.III. C. Financial Report – January 2021
Documents:
CONSENT CALENDAR ITEM C.PDF
4.IV. D. Treasurer’s Report For The Month Ending January 31, 2021
Documents:
CONSENT CALENDAR ITEM D.PDF
4.V. E. By Motion, Approve Amendment #3 To Professional Services Agreement PS 09-15- 01 With Ecology Action To Extend The Term Of The Contract To December 31, 2021
Documents:
CONSENT CALENDAR ITEM E.PDF
4.VI. F. By Motion, Accept The Independent Audit Of Alameda Municipal Power’s Financial Position For The Fiscal Years Ended June 30, 2020 And June 30, 2019, And Its Associated Reports
Documents:
CONSENT CALENDAR ITEM F.PDF
5. AGENDA ITEMS
5.I. A. For Information Only, Summary Of 10-Year Financial Pro Forma Analysis
Documents:
AGENDA ITEM A.PDF
6. GENERAL MANAGER'S REPORT
6.I. A. General Manager’s Report – February 2021
Documents:
GENERAL MANAGERS REPORT.PDF
7. COUNCIL COMMUNICATIONS
8. BOARD COMMUNICATIONS
9. ORAL COMMUNICATIONS - NON AGENDA (PUBLIC COMMENT) Members of the public are invited to address the Board on any subject related to the activities of Alameda Municipal Power not otherwise appearing on the Agenda.
10. ADJOURNMENT
l Each member of the public who wishes to speak is afforded up to 5 minutes per agenda item, which may be increased or limited by the presiding officer. l Sign language interpreters will be available on request. Please contact Hayley Wise at 748-3908 or 522-7538 (TDD number) or EMAIL at least 72 hours before the meeting to request an interpreter. l Accessible seating for persons with disability (including those using wheelchairs) is available. l Minutes of the meeting are available in enlarged print. l Audiotapes of the meeting are available upon request. l Please contact Hayley Wise at 748-3908 or 522-7538 (TDD number) or EMAIL at least 72 hours prior to the meeting to request agenda materials in an alternative format, or any other reasonable accommodation that may be necessary to participate in and enjoy the benefits of the meeting.
Documents related to this agenda are available for public inspection and copying at Alameda Municipal Power’s Service Center – 2000 Grand Street during office hours.
Know Your Rights Under the Sunshine Ordinance
Government’s duty is to serve the public, reaching its decisions in full view of the public.
Commissions, boards, councils and other agencies of the City of Alameda exist to conduct the citizen of Alameda’s business. This ordinance assures that deliberations are conducted before the people and that City operations are open to the people’s review.
For more information on your rights under the sunshine ordinance or to report a violation of the ordinance, contact the Open Government Commission:
l 2263 Santa Clara Avenue Room 380 Alameda, CA, 94501 l Phone: 510-747-4800 l Fax: 510-865-4048 l EMAIL CITY CLERK LARA WEISIGER
In order to assist the City’s efforts to accommodate persons with severe allergies, environmental illnesses, multiple chemical sensitivity or related disabilities, attendees at public meetings are reminded that other attendees may be sensitive to various chemical based products. Please help the City accommodate these individuals.
[Section 2-91.13 (d) - Sunshine Ordinance] NOTICE OF REGULAR MEETING CITY OF ALAMEDA PUBLIC UTILITIES BOARD Alameda Municipal Power- Service Center 2000 Grand Street (Corner of Grand and Clement Avenue) Alameda, CA 94501
Monday, March 15, 2021 at 6:00 P.M. Notice: Due to Governor Executive Order N-29-20, Board members can attend the meeting via teleconference. Members of the public can follow the meeting via web (https://bit.ly/3pEUtPq) and teleconference (+1 510-358-3865 Conference ID: 589 206 455#) and address the Public Utilities Board during the meeting via email ([email protected]) or via live comments during the web/teleconference. For those participating via the web application, attendees can use the raise hand icon to indicate they are requesting the opportunity to make live comments. For those attendees who are calling in via telephone only, the Clerk will advise them when to unmute themselves. Comments submitted during the meeting will be read into the record (subject to speaker time limits). Comments submitted prior to the meeting will be included in the meeting record. Comments submitted through the Microsoft Teams meeting chat window will not be monitored. Any requests for reasonable accommodations from individuals with disabilities should be made by contacting Alameda Municipal Power at [email protected].
The Alameda Municipal Power Service Center will be NOT be open to the public during the meeting. 1. ROLL CALL
2. ORAL COMMUNICATIONS - NONAGENDA (PUBLIC COMMENT) Members of the public are invited to address the Board on any subject related to the activities of Alameda Municipal Power not otherwise appearing on the Agenda.
3. SPECIAL PRESENTATION
4. CONSENT CALENDAR Consent Calendar items are considered routine and will be enacted, approved or adopted by one motion unless a request for removal for discussion or explanation is received from the Board or a member of the public.
4.I. A. Minutes Of The February 23, 2021 Regular Meeting Of The City Of Alameda Public Utilities Board
Documents:
CONSENT CALENDAR ITEM A.PDF
4.II. B. Listing Of Bills Paid – February 2021
Documents:
CONSENT CALENDAR ITEM B.PDF
4.III. C. Financial Report – January 2021
Documents:
CONSENT CALENDAR ITEM C.PDF
4.IV. D. Treasurer’s Report For The Month Ending January 31, 2021
Documents:
CONSENT CALENDAR ITEM D.PDF
4.V. E. By Motion, Approve Amendment #3 To Professional Services Agreement PS 09-15- 01 With Ecology Action To Extend The Term Of The Contract To December 31, 2021
Documents:
CONSENT CALENDAR ITEM E.PDF
4.VI. F. By Motion, Accept The Independent Audit Of Alameda Municipal Power’s Financial Position For The Fiscal Years Ended June 30, 2020 And June 30, 2019, And Its Associated Reports
Documents:
CONSENT CALENDAR ITEM F.PDF
5. AGENDA ITEMS
5.I. A. For Information Only, Summary Of 10-Year Financial Pro Forma Analysis
Documents:
AGENDA ITEM A.PDF
6. GENERAL MANAGER'S REPORT
6.I. A. General Manager’s Report – February 2021
Documents:
GENERAL MANAGERS REPORT.PDF
7. COUNCIL COMMUNICATIONS
8. BOARD COMMUNICATIONS
9. ORAL COMMUNICATIONS - NON AGENDA (PUBLIC COMMENT) Members of the public are invited to address the Board on any subject related to the activities of Alameda Municipal Power not otherwise appearing on the Agenda.
10. ADJOURNMENT
l Each member of the public who wishes to speak is afforded up to 5 minutes per agenda item, which may be increased or limited by the presiding officer. l Sign language interpreters will be available on request. Please contact Hayley Wise at 748-3908 or 522-7538 (TDD number) or EMAIL at least 72 hours before the meeting to request an interpreter. l Accessible seating for persons with disability (including those using wheelchairs) is available. l Minutes of the meeting are available in enlarged print. l Audiotapes of the meeting are available upon request. l Please contact Hayley Wise at 748-3908 or 522-7538 (TDD number) or EMAIL at least 72 hours prior to the meeting to request agenda materials in an alternative format, or any other reasonable accommodation that may be necessary to participate in and enjoy the benefits of the meeting.
Documents related to this agenda are available for public inspection and copying at Alameda Municipal Power’s Service Center – 2000 Grand Street during office hours.
Know Your Rights Under the Sunshine Ordinance
Government’s duty is to serve the public, reaching its decisions in full view of the public.
Commissions, boards, councils and other agencies of the City of Alameda exist to conduct the citizen of Alameda’s business. This ordinance assures that deliberations are conducted before the people and that City operations are open to the people’s review.
For more information on your rights under the sunshine ordinance or to report a violation of the ordinance, contact the Open Government Commission:
l 2263 Santa Clara Avenue Room 380 Alameda, CA, 94501 l Phone: 510-747-4800 l Fax: 510-865-4048 l EMAIL CITY CLERK LARA WEISIGER
In order to assist the City’s efforts to accommodate persons with severe allergies, environmental illnesses, multiple chemical sensitivity or related disabilities, attendees at public meetings are reminded that other attendees may be sensitive to various chemical based products. Please help the City accommodate these individuals.
[Section 2-91.13 (d) - Sunshine Ordinance] AGENDA ITEM NO.: 4.A.1 MEETING DATE: 03/15/2021
DRAFT MINUTES OF THE REGULAR MEETING CITY OF ALAMEDA PUBLIC UTILITIES BOARD MEETING
February 23, 2021
1. ROLL CALL
President McCormick called the meeting to order at 6 p.m. On roll call, the following commissioners were present: President McCormick, Commissioner Serventi, Commissioner Gould, Commissioner Giuntini and City Manager Levitt.
2. ORAL COMMUNICATIONS – NON-AGENDA (Public Comment)
None.
3. SPECIAL PRESENTATION
None.
4. CONSENT CALENDAR
A. Minutes–Special Meeting–January 27, 2021
A2. Minutes–Regular Meeting–January 27, 2021
B. Listing of Bills Paid–January 2021
C. Financial Report–December 2020
D. Treasurer’s Report for the Month Ending December 31, 2020
E. By Motion, Accept Alameda Municipal Power’s Senate Bill 1037 (2005) Energy Efficiency Report for Fiscal Year 2021
F. By Motion, Authorize the General Manager to Make the Annual Maintenance Payment for the Harris Northstar Customer Information System for a Total Not to Exceed of $94,991.28
G. By Motion, Authorize the General Manager to Issue Purchase Orders to Howard Industries, Inc., in an Amount Not to Exceed $45,000 and Hitachi ABB Power Grids in an Amount Not to Exceed $67,500 Per Material Specification No. MS 05-18-01, and to Anixter Inc. in an Amount Not to Exceed $17,600 from Informal Bid Requests from a Minimum of Three Suppliers
H. By Motion, Authorize the General Manager to Request the Consent of the City Council to Solicit Bids and Sell Surplus Digger-Derrick Utility Vehicle AGENDA ITEM NO.: 4.A.2 MEETING DATE: 03/15/2021
I. By Motion, Authorize the General Manager to Issue a Purchase Order to the Okonite Company in an Amount Not to Exceed $688,500 with a Contingency of $34,500 for a Total Amount Not to Exceed of $722,900 to Purchase 45,000 Feet of 1/10 AWG, and 40,500 Feet of 500 KCMIL Underground Distribution 15 Kilovolt Power Cable Per Material Specification No. MS 09-18-01
J. By Motion, Authorize the General Manager to Enter into a Professional Services Agreement for a Term of Five Years with PlanetBids, Inc., in an Amount Not to Exceed $92,100, Which Includes a $12,000 Contingency for Additional Licenses, for a Software- as-a-Service EProcurement Solution
President McCormick pulled Item E for discussion.
With a motion from Commissioner Giuntini and a second from Commissioner Serventi, the Board approved the balance of the consent calendar.
Commenting on SB 1037, President McCormick said she was completely in favor of accepting the report.
It is notable that AMP has exceeded its targets, President McCormick said, but they were extremely conservative in her opinion.
While the overhead calculations may appear high for AMP’s direct-install program, Energy Plus, it should be noted that the program is high-touch and serves a market sector that is more difficult to reach, she said.
She also noted that the report shows that AMP’s online portal programs have a very high overhead, and appreciates that staff has taken some steps to look at better options for administration of them.
She said she supported that AMP staff used some customized net-to-gross ratios because they better represent the way that AMP implements our programs. The SB 1037 report meets the letter and spirit of the law, and the Board should approve it, she said.
Additionally, she recommended that further consideration be given to AMP’s energy efficiency goals and program metrics to meet internal goals and strategic priorities, beyond the compliance requirements of SB 1037.
With a motion from Commissioner Serventi and a second from Commissioner Giuntini, the Board unanimously approved item E.
5. AGENDA ITEMS
A. By Resolution, Approve Alameda Municipal Power’s 10-Year Energy Efficiency Targets for Fiscal Years 2022 Through 2031 as Required by Assembly Bill 2021 (2006) and Assembly Bill 2227 (2012) AGENDA ITEM NO.: 4.A.3 MEETING DATE: 03/15/2021
Following a presentation from staff, President McCormick said that the compliance goals for energy efficiency are the floor and AMP needs to reach higher. AMP needs to develop its own measurements, she said, and not rely on calculations of the total resource cost (TRC) test that do not measure areas such as carbon impact, customer impact, and air quality of buildings.
In addition, AMP needs to help customers save energy and money in light of the COVID- 19 crisis.
She encouraged staff not to get too mired in the details of energy efficiency compliance reporting, and instead focus on AMP’s internal goals for energy efficiency programs; how staff can measure the results of the programs; and how staff can serve Alameda customers better.
Commissioner Serventi said AMP needs to look at what energy efficiency means to customers. He asked staff to consider how AMP will respond to customers who may feel that energy efficiency is not as important now that AMP provides 100% green energy.
Staff will need to reach out to customers and convince them that energy efficiency is important from a financial savings perspective.
With a motion from City Manager Levitt and a second from Commissioner Giuntini, the Board unanimously approved the item.
6. GENERAL MANAGER’S REPORT
A. General Manager’s Report–January 2021
In his update, General Manager Procos said the City Council recently approved the 30-year renewal of the base resource contract with the Western Area Power Administration (WAPA) for AMP’s allocation of carbon-free hydro power from the Central Valley Project. He also told the Board that AMP recently hired a new line superintendent with strong experience.
Commissioner Serventi thanked General Manager Procos for updating solar metrics in the General Manager’s Report. Commissioner Gould also said the new solar metrics were useful.
Commissioner Giuntini asked a clarifying question about metrics on new customer enrollments in AMP’s financial assistance programs.
7. COUNCIL COMMUNICATIONS
City Manager Levitt updated the Board on developments related to COVID-19, and policing and social justice.
AGENDA ITEM NO.: 4.A.4 MEETING DATE: 03/15/2021
8. BOARD COMMUNICATIONS
None.
9. ORAL COMMUNICATIONS – NON-AGENDA (PUBLIC COMMENT)
None.
10. ADJOURNMENT
President McCormick adjourned the meeting at 6:47 p.m.
AGENDA ITEM NO.: 4.B.1 MEETING DATE: 02/23/2021
Alameda, California From Check Date: 01/01/2021 - To Check Date: 01/31/2021 The following bills payable out of the Alameda Municipal Power funds were approved for payment. SUPPLIER DESCRIPTION AMOUNT NO CALIF POWER AGENCY ALL POWER BILL-JANUARY(P) 3,367,747.00 ALAMEDA, CITY OF PAYROLL(A) 990,152.50 ALAMEDA, CITY OF TRANSFER TO GENERAL FUND(A) 401,200.00 ALAMEDA, CITY OF UTILITY TAX(A) 388,888.64 U S BANK TRUST NA 2010A&B SERIES REVENUE BOND(A) 217,829.56 COUNTY OF ALAMEDA RADIOS(O) 166,477.04 ALAMEDA, CITY OF PILOT & ROI CHARGES(A) 127,833.34 ECOLOGY ACTION OF SANTA CRUZ REBATE(P) 43,680.36 CLEARESULT CONSULTING,INC. REBATE(P) 43,091.15 SYNERGY COMPANIES LED INTSALL(P) 31,471.55 JOHN DESCHAINE LEAVE PAY(O) 30,000.00 3 DEGREES, INC. ALAMEDA GREEN PGM(P) 26,250.88 1835 ALAMEDA PROPERTY LLC LEASE-BLDG(A) 26,204.23 ZONES, INC COMPUTER SPLYS(A) 24,074.45 CALIF.DEPT.OF TAX & FEE ADMIN SURCHARGE,SALES USE & FUEL TAX(A) 23,994.17 NORTHWEST PUBLIC POWER ASSOC. MEMBERSHIP RENEWAL(G) 23,348.29 EAST BAY REGIONAL RADIOS(O) 22,680.00 ONE SOURCE DISTRIBUTORS ELECTRICAL SPLYS(I) 21,715.24 DATAPROSE, LLC. PRINTING SVCS(A) 16,826.03 LAW OFFICES OF SUSIE BERLIN PROFESSIONAL SVCS(A) 15,171.00 SHPIGLER CONSULTING INC CONSULTING SVCS(A) 8,000.00 NEW BASIS WEST, LLC. ELECTRICAL SPLYS(O) 7,155.70 AZCO ELECTRICAL SPLYS(I) 6,704.62 ANIXTER INC. ELECTRICAL SPLYS(I) 5,244.24 CRYSTAL SMR INC. ELECTRICAL SPLYS(O) 4,996.68 THE CREATIVE GROUP TEMP SVCS(M) 4,143.75 HARRIS SOFTWARE RENEWAL(A) 4,000.00 SPIEGAL & MCDIARMID LLP PROFESSIONAL SVCS(A) 3,761.25 U.S. BANK IMPAC GOV. SVCS CAL CARD PAYMENT(V) 3,471.57 WEST COAST ARBORISTS, INC TREE TRIMMING(O) 3,444.70 UNIVERSAL BLDG.SVCS.SPLY CO. JANITORIAL SVCS(A) 3,220.00 LANDIS+GYR TECHNOLOGY, INC DATA SVCS(A) 3,154.75 COOPER COMPLIANCE CORP CONSULTING SVCS(A) 3,020.00 CLEAN HARBORS ENV. SERVICES DISPOSAL FEES(O) 2,859.60 AT&T PHONE SVCS(A) 2,813.18 VERIZON WIRELESS SERVICES, LLC DATA SVCS(A) 2,236.42 SCG HARBOR BAY PKWY PHASE1,LLC REBATE(P) 1,760.76 FORSTER & KROEGER LANDSCAPE LANDSCAPING SVCS(A) 1,550.00 PATRICIA SOFRANAC METER SOCKET REBATE(E) 1,500.00 ROWENA STAUBER METER SOCKET REBATE(E) 1,500.00 SHWETA KOHLI METER SOCKET REBATE(E) 1,500.00 GREAT AMERICA FINANCIAL SVCS. COPIER LEASE(A) 1,469.77 ABB INC ELECTRICAL SPLYS(I) 1,430.56 ALAMEDA, CITY OF GASOLINE CHARGES(O) 1,425.53 EAST BAY BLUEPRINT & SUPPLY SERVICE CONTRACT & PRINTING SVCS(O) 1,399.81 SIEMENS INDUSTRY INC ELECTRICAL SPLYS(I) 1,317.00 HEATHER HEINBAUGH TUITION REIMBURSEMENT(C) 1,250.00 E B M U D WATER CHARGES(A) 1,218.40 AGENDA ITEM NO.: 4.B.2 MEETING DATE: 02/23/2021
Alameda, California From Check Date: 01/01/2021 - To Check Date: 01/31/2021 The following bills payable out of the Alameda Municipal Power funds were approved for payment. SUPPLIER DESCRIPTION AMOUNT AMERICAN REVENUE MGMT COMMISSIONS(C) 1,044.03 ALAMEDA MARINA RENTAL PARKING SPACES(A) 1,000.00 THYSSENKRUPP ELEVATOR MAINTENANCE(A) 762.57 SWIMS MAINTENANCE(A) 727.50 SOLARWINDS MAINTENANCE(A) 649.00 ALAMEDA ELECTRICAL DISTR. ELECTRICAL SPLYS(I) 629.88 SMART UTILITY SOLUTIONS SYSTEM ADDITIONS(O) 590.00 8X8 INC COMPUTER SPLYS(A) 523.82 LINNEA OLIVER EV CHARGER REBATE(P) 500.00 LITHO PROCESS PRINTING SVCS(A) 496.08 BLAISDELLS OFFICE SPLYS(V) 430.93 GRAYBAR ELECTRIC COMPANY ELECTRICAL SPLYS(I) 395.28 PACIFIC GAS AND ELECTRIC PILOT WIRE OWNERSHIP FEE(A) 386.20 BENNETT,SAMUELSEN,ET AL. LEGAL SVCS(A) 369.17 KORTICK MANUFACTURING CO ELECTRICAL SPLYS(I) 368.99 SELECT FIRST AID & SAFETY FIRST AID SPLYS(O) 352.85 UNITED PARCEL SERVICES SHIPPING(A,M) 320.90 JOHNSON CONTROLS FIRE PROT. LP FIRE ALARM & SPRINKLER TEST(A) 312.50 GRAINGER INC ELECTRICAL SPLYS(I) 232.75 ARAMARK INC JANITORIAL SVCS(A) 200.00 JEREMY D. WEINSTEIN LEGAL SVCS(A) 175.00 MOOD MEDIA MONTHLY COST(M) 164.04 AMERICAN PUBLIC POWER ASSOC. SAFETY MANUALS(O) 159.48 ADT ALARM MONITORING(A) 158.22 CHUCK LEE METER SOCKET REBATE(P) 157.96 JOSEPH WIGWE METER SOCKET REBATE(E) 130.00 CALVIN WONG METER SOCKET REBATE(P) 130.00 ADVANCED INTEGRATED PEST MGMT PEST CONTROL(A) 125.00 DAVIS JIANG METER SOCKET REBATE(E) 116.63 KAISER FOUNDATION HEALTH PLAN PHYSICALS(O) 115.00 ALAMEDA MAIL BOXES PLUS COMMISSIONS(C) 110.70 ABAG GAS CHARGES(A) 94.12 CENTRO PRINT SOLUTIONS TAX FORMS(A) 93.01 THOMAS KNIGHT MEALS(O) 64.00 NO CALIFORNIA JT POLE ASSO MONTHLY ASSESSMENT(O) 55.16 ANDRE BASLER EXPENSE REIMB(O) 29.99 TONY NGUYEN MEALS(O) 29.62 STEVE NGUYEN MEALS(O) 26.33 PAGANO'S HARDWARE MART HARDWARE(V) 20.72 WREGIS TRANSFER FEE(P) 1.48 6,106,432.63 The above claims in the amount of $6,106,432.63 have been examined, certified correct, and approved for payment by the secretary of the Public Utilities Board.
______/S/ Secretary of the Public Utilities Board AGENDA ITEM NO: 4.C.1 MEETING DATE: 03/15/2021
Monthly Financial Report
with data through January 2021 (Unaudited)
The data contained in this report has not been independently audited.
AGENDA ITEM NO: 4.C.2 MEETING DATE: 03/15/2021 Alameda Municipal Power Financial Report With Supporting Documentation For the Month of January 2021
Table of Contents
Management Summary ...... 3 Financial Summary of Selected Totals ...... 4 Revenue Graphs ...... 5 Expense Graphs ...... 6 Gross Earning, Wage & Benefits Graphs ...... 7 Purchased Power Billing From Northern California Power Agency ...... 8 Analysis of Capital Spending ...... 9 Special Revenue Summary ...... 10
Financial Reports In Detail ...... 11
Financial Notes ...... 12 Monthly & Year To Date (YTD) Performance Versus Budget ...... 13 Monthly & YTD Performance Versus Last Year’s Actual...... 14 Balance Sheet ...... 15-16 Statement of Cash Flow ...... 17 Utility Plant Detail ...... 18 Electric Non-Power Costs Analysis/Balancing Account Update ...... 19
AGENDA ITEM NO: 4.C.3 MEETING DATE: 03/15/2021
MANAGEMENT SUMMARY
AGENDA ITEM NO: 4.C.4 MEETING DATE: 03/15/2021
Alameda Municipal Power Financial Summary of Selected Totals For Fiscal Year (FY) 2021 Year to Date as of January 2021
Over/Under % Change Over/Under % Change YTD Actual FY2021 Budget Budget with Budget Prior Year Prior Yr with Prior Yr Prorated YTD Actual Electric Sales (KWH): 197,119,310 202,825,207 (5,705,897) -2.8% 203,834,028 (6,714,718) -3.3% Residential (D1 & D2) 81,356,960 73,378,763 7,978,197 10.9% 74,427,026 6,929,934 9.3% General Service (A1) 25,661,720 29,758,140 (4,096,420) -13.8% 32,651,222 (6,989,502) -21.4% Demand Metered (A2 &A3) 82,575,833 91,699,522 (9,123,689) -9.9% 88,112,153 (5,536,320) -6.3% Municipal & Other ( M1, M2, M3, OL & CT) 7,524,797 7,988,781 (463,984) -5.8% 8,643,627 (1,118,830) -12.9% Commercial & Industrial 108,237,553 121,457,663 (13,220,110) -10.9% 120,763,375 (12,525,822) -10.4%
Electric Revenue - see 4.C.13 & 14 for Income Statement 38,630,894 38,510,044 120,850 0.3% 40,493,414 (1,862,520) -4.6% Residential (D1 & D2) 16,505,881 14,658,699 1,847,182 12.6% 14,991,493 1,514,389 10.1% General Service (A1) 5,335,721 6,090,467 (754,746) -12.4% 6,629,025 (1,293,304) -19.5% Demand Metered (A2 &A3) 13,596,105 14,601,378 (1,005,273) -6.9% 14,321,577 (725,472) -5.1% Municipal & Other ( M1, M2, M3, OL & CT) 1,488,344 1,499,895 (11,550) -0.8% 1,674,416 (186,071) -11.1% Solar Rebate Surcharge - - - N/A - - N/A Energy Adjustment Revenue - - - N/A 14,574 (14,574) N/A Other Operating Revenue 95,165 232,021 (136,855) -59.0% 248,016 (152,851) -61.6% Revenue from REC*, Cap&Trade & LCFS** Credit Sale 1,573,985 1,417,655 156,330 11.0% 2,574,668 (1,000,683) -38.9% Alameda Point Telephone 35,692 9,929 25,763 259.5% 39,645 (3,954) -10.0% Electric Sales 36,926,052 36,850,439 75,613 0.2% 37,616,511 (690,459) -1.8%
Electric Operating & Non-Operating expenses - see 4.C.13 & 14 for Income Statement (33,187,744) (38,625,429) 5,430,295 -14.1% (33,755,441) 567,697 -1.7% Purchased Power (17,527,416) (19,075,947) 1,548,531 -8.1% (18,085,105) 557,689 -3.1% Customer Programs & Services (2,437,200) (3,275,239) 838,039 -25.6% (2,144,423) (292,778) 13.7% Operations & Maintenance (3,040,052) (4,354,605) 1,314,553 -30.2% (2,756,401) (283,651) 10.3% Administration (4,198,239) (5,762,748) 1,564,509 -27.1% (5,042,999) 844,760 -16.8% Expenses Funded by Special Revenue (346,617) (1,150,573) 803,956 -69.9% (662,174) 315,557 -47.7% Depreciation & Amortization (2,275,978) (1,983,333) (292,644) 14.8% (2,234,667) (41,310.36) 1.8% Other Nonoperating Revenue (Expenses)-Net 640,658 930,906 (290,248) -31.2% 1,235,222 (594,564) -48.1% Debt Related Charges (699,507) (699,671) 164 0.0% (743,042) 43,535 -5.9% PILOT*** & City Transfer (3,302,033) (3,245,469) (56,564) 1.7% (3,318,644) 16,611 -0.5% Alameda Point Telephone (1,359) (8,750) 7,390 -84.5% (3,207) 1,847.96 -57.6%
Operating expenses excluding Purch power, depreciation (10,022,108) (14,543,165) 4,521,056 -31.1% (10,605,997) 583,889 -5.5% Electric Net Income (Loss) - See 4.C.13 & 14 5,443,150 (115,386) 5,558,535 -4817.4% 6,737,973 (1,294,823) -19.2%
* REC - Renewable Energy Credits ** LCFS - Low Carbon Fuel Standard *** PILOT - Payment in Lieu of Taxes AGENDA ITEM NO: 4.C.5 MEETING DATE: 03/15/2021
$45,000,000
38,510,044 38,630,894 $40,000,000
$35,000,000
$30,000,000
$25,000,000
16,505,881 $20,000,000 14,658,699 14,601,378 $15,000,000 13,596,105
6,090,467 $10,000,000 5,335,721 1,573,985 $5,000,000 1,499,895 1,488,344 232,021 1,417,655 95,165 $0 General Service Demand Metered Solar Surcharge & REC/Cap&Trade Revenue Total Residential Municipal (A1) (A2 &A3) Other Oper. Rev Revenue FY2021 Budget 38,510,044 14,658,699 6,090,467 14,601,378 1,499,895 232,021 1,417,655 FY2021 Actual 38,630,894 16,505,881 5,335,721 13,596,105 1,488,344 95,165 1,573,985
Electric Revenue through January 2021 FY2021 Budget FY2021 Actual
250,000,000
202,825,207 197,119,310 200,000,000
150,000,000
91,699,522 100,000,000 81,356,960 82,575,833 73,378,763
50,000,000 29,758,140 25,661,720
7,988,781 7,524,797 0 Demand Metered (A2 KWH total Residential General Service (A1) Municipal &A3) FY2021 Budget 202,825,207 73,378,763 29,758,140 91,699,522 7,988,781 FY2021 Actual 197,119,310 81,356,960 25,661,720 82,575,833 7,524,797
Electric Sales (KWh) through January 2021 FY2021 Budget FY2021 Actual AGENDA ITEM NO:4.C.6 MEETING DATE: 03/15/2021
$25,000,000
19,075,947 $20,000,000 17,527,416
$15,000,000
$10,000,000 5,762,748 4,198,239 3,245,469 3,275,239 4,354,605 $5,000,000 2,437,200 3,040,052 699,671 3,302,033 1,150,573 346,617 699,507 $0 Customer Exp. Funded Operations & Purchased Debt Related PILOT & City Administration Programs & by Special Maintenance power Charges Transfer Services Rev FY2021 Budget 5,762,748 3,275,239 4,354,605 1,150,573 19,075,947 699,671 3,245,469 FY2021 Actual 4,198,239 2,437,200 3,040,052 346,617 17,527,416 699,507 3,302,033
Electric Expense through January 2021 FY2021 Budget FY2021 Actual
$8,000,000 $6,794,520 $7,000,000 $6,221,439 $6,000,000 $5,476,614
$5,000,000 (1) Labor $3,807,141 $5,476,614 $4,000,000 54.87%
$3,000,000
$1,512,914 $2,000,000
$696,466 $1,000,000
$- (3) Material (1) Labor (2) Service (3) Material $696,466 (2) Service 6.98% $3,807,141 38.15% YTD Budget YTD Actual (1) Labor - Wages (2) Service - Benefits & Other Services Provided by Ouside Vendors Electric Operating Expenses (3) Material - Purchased Supplies & Energy Efficiency Through January 2021 (Purchased Power & Depreciation Excluded) AGENDA ITEM NO: 4.C.7 MEETING DATE: 3/15/2021
Alameda Municipal Power Fiscal Year (FY) 2021 Total Wages & Benefits Through January 2021
$18,000,000
$16,000,000
$14,000,000
$12,000,000
$10,000,000
$8,000,000
$6,000,000
$4,000,000
$2,000,000
$0
TOTAL WAGES & BENEFITS FY 2020 actual FY 2021 actual FY 2021 budget
$12,000,000
$10,000,000
$8,000,000
$6,000,000
$4,000,000
$2,000,000
$0
GROSS WAGES FY2020 actual FY2021 actual FY2021 budget
Budgeted Employees: 92 Actual Employees: 82 + 1 Temp AGENDA ITEM NO: 4.C.8 MEETING DATE: 03/15/2021
Alameda Municipal Power Selected Information - Purchased Power Billing From NCPA for the Month of January 2021
AMP pays purchase power invoices through Northern California Power Agency (NCPA). Generally, the monthly purchased power cost consists of NCPA's estimated power billing invoice for the current month, and an adjustment for the preceding months.
The monthly gross purchased power billing is listed below:
Fiscal Year (FY) 2021 FY 2021 FY 2020 FY 2020 Power Cost per bill/ Mo. Monthly Year-to-Date Monthly Year-to-Date July 2,468,322 2,468,322 2,178,322 2,178,322 August 2,541,435 5,009,757 2,221,466 4,399,788 September 1,800,469 6,810,226 2,197,127 6,596,915 October 1,725,192 8,535,418 2,201,959 8,798,874 November 2,486,641 11,022,059 2,435,602 11,234,476 December 3,177,842 14,199,901 2,875,992 14,110,468 January 3,367,747 17,567,648 3,975,350 18,085,818 February March - - April - - May - - June - -
Jan./Prior Year Net Metering Purchase - Solar 1,533 35,327 2,187 16,526
Jan./Prior Year Payment to NCPA for Energy Efficiecy Programs & Other 16,531 26,595 Jan./Prior Year Miscellaneous (25,798) (92,090) (43,834) Prior Year NCPA Refund for Prior Year Settlement - - - - 3,343,482 17,527,416 3,977,537 18,085,105
. $4,000,000
$3,500,000
$3,000,000
$2,500,000
$2,000,000
$1,500,000
$1,000,000
$500,000
$-
Monthly Purchased Power Billing Invoice From NCPA FY2021 Monthly Billing FY2020 Monthly Billing AGENDA ITEM 4.C.9 MEETING DATE: 03/15/2021
9,000,000.00
8,000,000.00 November 2012
7,000,000.00
6,000,000.00
5,000,000.00
4,000,000.00
3,000,000.00
2,000,000.00
1,000,000.00
- JUL AUG SEP OCT NOV DEC JAN FEB MAR APR MAY JUN
Electric Capital Additions Budget vs. Actual and Forecast Budget Forecast Actual YTD through January, 2021
7 Total Budget This Month YTD Actual Utility System Capital Projects System Replacements 626,500 4,621 280,007 System Additions 0 0 0 New Loads 3,083,307 124,172 444,993 Underground Conversions 1,531,000 9,930 125,677 Funded by Cap & Trade 306,550 5,959 575,402 Funded by REC 1,955,800 469 469 $7,503,157 $145,151 $1,426,549
System Enhancements (Capitalized) Transmission 0 0 0 Distribution 0 0 0 Substation Equipment 290,650 0 44,193 Subtotal - System Enhancements Projects $290,650 $0 $44,193
Information Systems Capital Projects IT Equip (Monitors, tablets, workstations) 0 0 0 IT Security 0 0 0 Network & Storage 0 0 0 IT Additions & Expansion 200,000 0 0 All Others - unplanned 0 0 0 Subtotal - Information Systems Projects $200,000 $0 $0
Admin Capital Projects Financial & CIS System Upgrades $165,000 1,050 11,655 Subtotal - Admin Services Projects $165,000 $1,050 $11,655
Support Services Capital Projects Security Upgrades 0 0 0 Subtotal - Support Services Capital Projects $20,000 $0 $15,396
Total Capital Projects for FY 2021 $8,178,807 $146,201 $1,497,794 4/14/16 Per Sophie, budget will not match budget book total still. Collected This Month YTD Actual
Total Outside Billing Projects for FY 2021 $ (2,440,470) ($36,101) $57,775 AGENDA ITEM NO: 4.C.10 MEETING DATE:03/15/2021 Special Revenue Summary - FY2021 Year To Date through January 2021
Cap & Trade Revenue Funding from Operating Capital Total Reserve - 10 2114 Cash Receipts Power Costs Expenses Projects Expenditures Reserve Balance
Reserve Beginning Balance 6-30-2020 3,619,827 Jul-20 - (204,167) - (118,630) (322,797) 3,297,029 Aug-20 - (204,167) - (78,888) (283,055) 3,013,975 Sep-20 307,896 (131,667) - (43,536) (175,203) 3,146,667 Oct-20 - (131,667) - (317,838) (449,505) 2,697,162 Nov-20 - (131,667) - (5,761) (137,428) 2,559,735 Dec-20 266,089 (131,667) - (4,790) (136,457) 2,689,366 Jan-21 (131,667) (5,959) (137,626) 2,551,740 Feb-21 - 2,551,740 Mar-21 - 2,551,740 Apr-21 - 2,551,740 May-21 - 2,551,740 Jun-21 - 2,551,740 Total To Date 573,985 (1,066,669) - (575,402) (1,642,071) 2,551,740
Renewable Energy Credits Funding from Operating Capital Total Revenue Reserve - 10 2113 Cash Receipts Power Costs Expenses Projects Expenditures Reserve Balance
Reserve Beginning Balance 6-30-2020 19,821,572 Jul-20 - - - - - 19,821,572 Aug-20 - (640) (8,813) - (9,453) 19,812,119 Sep-20 - - (7,071) - (7,071) 19,805,048 Oct-20 - (114,000) (37,892) - (151,892) 19,653,156 Nov-20 - (108,150) (6,837) - (114,987) 19,538,169 Dec-20 - (111,600) (127,628) - (239,228) 19,298,940 Jan-21 - (116,640) (21,879) (469) (138,988) 19,159,952 Feb-21 - 19,159,952 Mar-21 - 19,159,952 Apr-21 - 19,159,952 May-21 - 19,159,952 Jun-21 - 19,159,952 Total To Date - (451,030) (210,120) (469) (661,620) 19,159,952
Low Carbon Fuel Standard Funding from Operating Capital Total Revenue Reserve - 10 2115 Cash Receipts Power Costs Expenses Projects Expenditures Reserve Balance
Reserve Beginning Balance 6-30-2020 1,737,572 Jul-20 - - (3,616) - (3,616) 1,733,956 Aug-20 - - (9,737) - (9,737) 1,724,219 Sep-20 - - (9,277) - (9,277) 1,714,942 Oct-20 - - (8,693) - (8,693) 1,706,249 Nov-20 - - (10,258) - (10,258) 1,695,991 Dec-20 - - (9,247) - (9,247) 1,686,743 Jan-21 1,000,000 - (31,796) (31,796) 2,654,948 Feb-21 - 2,654,948 Mar-21 - 2,654,948 Apr-21 - 2,654,948 May-21 - 2,654,948 Jun-21 - 2,654,948 Total To Date 1,000,000 - (82,624) - (82,624) 2,654,948
Combined Total 1,573,985 (1,517,699) (292,744) (575,872) (2,386,315) 24,366,640 AGENDA ITEM NO: 4.C.11 MEETING DATE: 3/15/2021
FINANCIAL REPORT DETAIL AGENDA ITEM NO: 4.C.12 MEETING DATE: 3/15/2021
Alameda Municipal Power Financial Notes For the Month of January 2021
1. Sales of Electricity: Electricity sales for the month were 9.2 percent under budget and 10.8 percent lower than the same month last year. Residential sales were 0.9 percent over budget for the month and 7.7 percent lower than the same month last year. General Service A1 sales were 23.5 percent under budget for the month and 30.6 percent lower than the same month last year. Demand Metered Services A2 & A3 sales were 9.4 percent under budget for the month and 5.3 percent lower than the same month last year. Municipal and Other Service sales were 14.3 percent over budget for the month and 3.3 percent lower than the same month last year.
Overall KWh sales were 9.0 percent under budget for the month and 13.1 percent lower than the same month last year. Residential KWh sales were 0.9 percent under budget for the month and 13.2 percent lower than the same month last year. General Service A1 KWh sales were 25.5 percent under budget for the month and 32.5 percent lower than the same month last year. Demand Metered Services A2 & A3 KWh sales were 12.7 percent under budget for the month and 6.6 percent lower than the same month last year. Municipal and Other Service KWh sales were 0.7 percent over budget for the month and 1.0 percent higher than the same month last year.
2. Purchased Power: Purchased power costs for the month were $70,892 under budget and $634,055 lower than the same month last year (see 4.C.13 & 4.C.14 Income Statement) due to prior month negative adjustments of $348,437. The NCPA monthly billing includes estimates for the current month and adjustments for preceding months.
3. Operating Expenses: Monthly operating expenses, excluding purchased power and depreciation, were 10.8 percent under budget and 9.0 percent higher than the same month last year. For year to date, Labor was 19.4 percent under budget, Service was 38.8 percent under budget, and Material was 54.0 percent under budget.
Non-Operating Revenues and Expenses: Net non-operating revenue/expenses were 15.5 percent lower budget and 70.5 percent lower than the same month last year due to lower interest income on investments.
AGENDA ITEM NO: 4.C.13 MEETING DATE: 03/15/2021 Alameda Municipal Power FY21 Income Statement - Budget vs Actual For January 1, 2021 through January 31, 2021
Current Current Actual Less YTD Actual YTD Actual Less Month Actual Month Budget Budget Amount Budget Budget Operating Revenues Sale of Electricity 5,589,084.73 5,941,519.18 352,434.45- 5.9- 36,926,051.93 36,850,438.87 75,613.06 0.2 Electric Other Operating Sales 15,227.76 33,145.82 17,918.06- 54.1- 95,165.35 232,020.74 136,855.39- 59.0- Cap & Trade Net Revenue 119,188.83 119,188.83- 100.0- 573,984.93 834,321.81 260,336.88- 31.2- REC Revenue Low Carbon Fuel Standard Credit Sale 83,333.33 83,333.33- 100.0- 1,000,000.00 583,333.31 416,666.69 71.4 Telephone Revenues 4,931.69 1,418.41 3,513.28 247.7 35,691.58 9,928.87 25,762.71 259.5 ------Total Operating Revenue 5,609,244.18 6,178,605.57 569,361.39- 9.2- 38,630,893.79 38,510,043.60 120,850.19 0.3 ------Operating Expense Power Balancing AC Adjustment Purchased Power 3,343,482.05 3,414,373.88 70,891.83- 2.1 17,527,415.96 19,075,947.04 1,548,531.08- 8.1 Energy Efficiency 29,074.45 49,147.00 20,072.55- 40.8 178,261.90 344,147.00 165,885.10- 48.2 Customer Assist, Solar Rebate & Other 19,660.15 11,662.00 7,998.15 68.6- 110,088.27 81,662.00 28,426.27 34.8- Telephone Expenses 1,249.50 1,249.50- 100.0 1,359.35 8,749.50 7,390.15- 84.5 Operations & Maintenance 609,990.29 621,897.06 11,906.77- 1.9 3,040,051.94 4,354,604.56 1,314,552.62- 30.2 Customer Service 348,634.27 350,163.63 1,529.36- 0.4 1,903,659.95 2,451,986.13 548,326.18- 22.4 Administrative and General 824,920.97 822,967.44 1,953.53 0.2- 4,198,239.44 5,762,747.94 1,564,508.50- 27.1 Depreciation and Amortization 322,503.06 283,333.33 39,169.73 13.8- 2,275,977.60 1,983,333.31 292,644.29 14.8- Customer Relations 30,768.04 55,043.84 24,275.80- 44.1 245,189.90 397,443.84 152,253.94- 38.3 Expenses Funded by Special Revenue 54,861.37 239,323.25 184,461.88- 77.1 346,617.06 1,150,573.25 803,956.19- 69.9 ------Total Operating Expense 5,583,894.65 5,849,160.93 265,266.28- 4.5 29,826,861.37 35,611,194.57 5,784,333.20- 16.2 ------Operating Income (Loss) 25,349.53 329,444.64 304,095.11- 92.3- 8,804,032.42 2,898,849.03 5,905,183.39 203.7 ------Nonoperating Income (Expense) Return on Investments 112,289.57 102,083.33 10,206.24 10.0 558,267.54 714,583.31 156,315.77- 21.9- Return on restricted investments 19.87 19.87 100.0- 128.72 128.72 100.0- Debt-related charges 99,929.63- 99,918.77- 10.86- 699,507.41- 699,671.29- 163.88 Net Nonoperating Income (Exp) 30,903.25 30,903.25- 100.0- 82,261.75 216,322.75 134,061.00- 62.0- Payment in Lieu of Taxes 127,833.34- 129,039.66- 1,206.32 0.9- 894,833.38- 903,587.44- 8,754.06 1.0- Misc. Credits & Debits to Surplus ------Total Nonoperating Income 115,453.53- 95,971.85- 19,481.68- 20.3 953,682.78- 672,352.67- 281,330.11- 41.8 ------Income before Transfer to the City 90,104.00- 233,472.79 323,576.79- 138.6- 7,850,349.64 2,226,496.36 5,623,853.28 252.6 ------Transfer to the City 401,200.00- 334,439.84- 66,760.16- 20.0 2,407,200.00- 2,341,881.86- 65,318.14- 2.8 ------Net Income (Loss) 491,304.00- 100,967.05- 390,336.95- 386.6 5,443,149.64 115,385.50- 5,558,535.14 4,817.4- ======AGENDA ITEM NO: 4.C.14 MEETING DATE: 03/15/2021 Alameda Municipal Power FY21 Comparative Income Statement For January 1, 2021 through January 31, 2021
Current Last Year Current Less YTD Actual Last Year YTD Less Month Amount Curr Month Last Yr Curr Amount YTD Last Yr YTD Operating Revenues Sale of Electricity 5,589,084.73 6,245,627.30 656,542.57- 10.5- 36,926,051.93 37,616,510.50 690,458.57- 1.8- Electric Operating Sales 15,227.76 38,848.68 23,620.92- 60.8- 95,165.35 262,590.21 167,424.86- 63.8- Cap & Trade Net Revenue 573,984.93 536,773.08 37,211.85 6.9 REC Sales Net Revenue 3,195.00- 3,195.00 100.0- 1,049,145.00 1,049,145.00- 100.0- Low Carbon Fuel Credit Sale 1,000,000.00 988,750.00 11,250.00 1.1 Telephone Revenues 4,931.69 5,542.60 610.91- 11.0- 35,691.58 39,645.30 3,953.72- 10.0------Total Operating Revenue 5,609,244.18 6,286,823.58 677,579.40- 10.8- 38,630,893.79 40,493,414.09 1,862,520.30- 4.6------Operating Expense Purchased Power 3,343,482.05 3,977,537.01 634,054.96- 15.9 17,527,415.96 18,085,105.04 557,689.08- 3.1 Energy Efficiency 29,074.45 19,473.59 9,600.86 49.3- 178,261.90 171,173.63 7,088.27 4.1- Customer Assist, Solar Rebate & Other 19,660.15 16,281.13 3,379.02 20.8- 110,088.27 85,862.40 24,225.87 28.2- Telephone Expenses 1,359.35 3,207.31 1,847.96- 57.6 Operations & Maintenance 609,990.29 399,817.57 210,172.72 52.6- 3,040,051.94 2,756,401.31 283,650.63 10.3- Customer Service 348,634.27 203,367.42 145,266.85 71.4- 1,903,659.95 1,515,663.03 387,996.92 25.6- Administrative and General 824,920.97 1,053,978.58 229,057.61- 21.7 4,198,239.44 5,042,999.14 844,759.70- 16.8 Depreciation and Amortization 322,503.06 318,385.07 4,117.99 1.3- 2,275,977.60 2,234,667.24 41,310.36 1.8- Customer Relations 30,768.04 28,971.66 1,796.38 6.2- 245,189.90 371,723.45 126,533.55- 34.0 Expenses Funded by Special Revenue 54,861.37 37,140.66 17,720.71 47.7- 346,617.06 662,174.30 315,557.24- 47.7 ------Total Operating Expense 5,583,894.65 6,054,952.69 471,058.04- 7.8 29,826,861.37 30,928,976.85 1,102,115.48- 3.6 ------Operating Income (Loss) 25,349.53 231,870.89 206,521.36- 89.1- 8,804,032.42 9,564,437.24 760,404.82- 8.0------Nonoperating Income (Expense) Return on Investments 112,289.57 337,326.81 225,037.24- 66.7- 558,267.54 929,112.87 370,845.33- 39.9- Return on restricted investments 19.87 3,556.49 3,536.62- 99.4- 128.72 30,248.91 30,120.19- 99.6- Debt-related charges 99,929.63- 106,148.89- 6,219.26 5.9- 699,507.41- 743,042.23- 43,534.82 5.9- Net Nonoperating Income (Exp) 39,718.41 39,718.41- 100.0- 82,261.75 275,860.59 193,598.84- 70.2- Payment in Lieu of Taxes 127,833.34- 125,333.33- 2,500.01- 2.0 894,833.38- 877,333.31- 17,500.07- 2.0 Misc. Credits & Debits to Surplus ------Total Nonoperating Income 115,453.53- 149,119.49 264,573.02- 177.4- 953,682.78- 385,153.17- 568,529.61- 147.6 ------Income before Transfer to the City 90,104.00- 380,990.38 471,094.38- 123.6- 7,850,349.64 9,179,284.07 1,328,934.43- 14.5------Transfer to the City 401,200.00- 397,113.60- 4,086.40- 1.0 2,407,200.00- 2,441,311.08- 34,111.08 1.4------Net Income (Loss) 491,304.00- 16,123.22- 475,180.78- 2,947.2 5,443,149.64 6,737,972.99 1,294,823.35- 19.2- ======AGENDA ITEM NO: 4.C.15 MEETING DATE: 03/15/2021
Alameda Municipal Power FY21 Consolidated Balance Sheet As of January 31, 2021
Current Last Year Current YTD YTD Amount YTD Amount - Last YTD
ASSETS
Utility Plant 114,548,554.96 113,706,673.06 841,881.90 0.7 Construction Work in Progress 6,754,056.46 5,317,352.22 1,436,704.24 21.3 Accumulated Depreciation 83,638,277.11- 80,091,508.82- 3,546,768.29- 4.2 ------Utility Plant Net 37,664,334.31 38,932,516.46 1,268,182.15- 3.4------Restricted Investments 2010A&B Installment Fund 964,624.27 936,749.56 27,874.71 2.9 2010A&B Reserve Fund 2,752,776.20 2,746,917.76 5,858.44 0.2 ------Restricted Investments 3,717,400.47 3,683,667.32 33,733.15 0.9 ------Investments Reserved - Special Purposes Insurance Reserve 1,200,000.00 1,200,000.00 Underground Cons. Reserve 12,882,053.51 11,788,662.21 1,093,391.30 9.3 Solar PV Rebate Reserve REC Net Revenue Reserve 19,159,952.13 19,641,825.62 481,873.49- 2.5- CAP&Trade Net REV Reserve 2,551,740.11 3,340,993.04 789,252.93- 30.9- Low Carbon Fuel St Rev Reserve 2,654,947.80 1,824,915.73 830,032.07 31.3 ------Investments Reserved - Special Purposes 38,448,693.55 37,796,396.60 652,296.95 1.7 ------Noncurrent Assets: NCPA projects and reserves 10,700,588.00 10,828,040.00 127,452.00- 1.2- Notes Receivable Deposits 40,000.00 40,000.00 Debt Issue Costs (Net) 464,181.31 525,831.91 61,650.60- 13.3- Deferred outflows re to pension 2,666,288.00 2,657,801.00 8,487.00 0.3 Deferred Outflows re to OPEB 59,672.00 1,509.00 58,163.00 97.5 Vectren Mgmt Fee Buy Out (Net) Interfund Advances 5.45 5.45- 100.0 ------Non Current Assets 13,930,729.31 14,053,187.36 122,458.05- 0.9------Current Assets: Cash and equivalents 56,626,598.99 50,150,296.13 6,476,302.86 11.4 Interest Receivable 10,156.89 27,693.90 17,537.01- 172.7- Accounts Receivable 9,141,408.40 8,801,270.93 340,137.47 3.7 Materials and Supplies 4,289,185.14 3,963,579.17 325,605.97 7.6 Prepaid PILOT/ROI 310,017.00 686,516.25 376,499.25- 121.4- Prepaid Power costs and others 26,204.00 25,441.00 763.00 2.9 ------Current Assets 70,403,570.42 63,654,797.38 6,748,773.04 9.6 ------Total Assets 164,164,728.06 158,120,565.12 6,044,162.94 3.7 ======
AGENDA ITEM NO: 4.C.16 MEETING DATE: 03/15/2021
Alameda Municipal Power FY21 Consolidated Balance Sheet As of January 31, 2021
Current Last Year Current YTD YTD Amount YTD Amount - Last YTD
CAPITALIZATION AND LIABILITIES
Capitalization: Earned surplus: Unappropriated 21,153,236.50 20,441,589.13 711,647.37 3.4- Appropriated Earnings 38,968,120.68 38,349,908.40 618,212.28 1.6- Current Net Earnings and Expense 5,443,149.64 6,737,972.99 1,294,823.35- 23.8 ------Total Earned Surplus 65,564,506.82 65,529,470.52 35,036.30 0.1------Equity in NCPA joint venture 10,572,051.00 10,673,031.00 100,980.00- 1.0 ------
Long Term Liabilities Long Term Debts 48,066,976.00 46,962,977.00 1,103,999.00 2.3- Capital Lease Payables Deferred Inflows re to pension 599,537.00 446,536.00 153,001.00 25.5- Interfund Advances ------Long Term Liabilities 48,666,513.00 47,409,513.00 1,257,000.00 2.6------
Current Liabilities A/P and Accrued Payroll 1,188,126.27 1,112,421.37 75,704.90 6.4- Litigation Judgement Interest Payable 94,791.56 101,010.71 6,219.15- 6.6 Purchase Power Balancing A/C 27,350,493.39 26,204,877.81 1,145,615.58 4.2- Deposits 7,819,581.79 4,990,557.64 2,829,024.15 36.2- Taxes Payable 371,362.20 416,919.40 45,557.20- 12.3 Other Accrued Liabilities 2,537,302.03 1,682,763.67 854,538.36 33.7------Current Liabilities 39,361,657.24 34,508,550.60 4,853,106.64 12.3------Total Capitalization and Liabilities 164,164,728.06 158,120,565.12 6,044,162.94 3.7- ======AGENDA ITEM NO: 4.C.17 MEETING DATE: 03/15/2021
Alameda Municipal Power Electric & Alameda Point Phone Services Statement of Cash Flows For the Month of January 2021
Current Month Year to Date
Net Cash Flows from Operating Activities Net Income (Loss) - Electric (491,304) 5,443,150 Net Income (Loss) - Alameda Point Phone - - - Depreciation & Amortization expense 322,503 635,275 - Plant Asset Retirement Accum Dep. Adjustment 2,288 1,640,703 - Debt Cost Amortization 5,138 35,963 - Balancing Account Year-end Adjustment - 1,020,616 - (Increase) Decrease in Lease Deposit - - - ( Increase ) Decrease in Accounts Receivable 817,866 (1,765,333) - ( Increase ) Decrease in Interest Receivable - - - ( Increase ) Decrease in Material & Supplies Inventory 51,482 (894,544) - ( Increase ) Decrease in Prepaids 62,003 (282,733) - Increase (Decrease) in Accounts Payable 336,918 (10,755) - Increase (Decrease) in Interest Payable (473,960) (511,276) - Increase (Decrease) in Customer Deposits (95,629) 1,757,785 - Increase (Decrease) in Taxes Payable (41,513) 45,669 - Increase (Decrease) in Other Accrued Liabilities (337,562) (1,227,305) - Increase (Decrease) in Pension-related Liabilities - 191,123
Net cash provided (used) by operating activities 158,229 6,078,337
Cash Flows From Investing Activities (Increase) Decrease in Utility Plant - - (Increase) Decrease in Construction Work in Progress (112,388) (2,902,582) 2010A&B Bond Fund Debt Service Trustee A/C 350,917 1,059,985 2010A&B Common Reserve Account Interest Income (14) (100) 2010 A&B Cost Issuance - Net Funding - - Plant Asset Retirement 2,288 1,640,703 Sale Proceed of Obsolete Assets - - (Increase) Decrease in NCPA - GOR Value - (128,537) (Increase) Decrease in NCPA - Projects Value - - (Increase) Decrease in Northern California Power Agency Various Deposits - - Net cash provided (used) by investing activities 240,803 (330,531)
Cash Flows From Financing Activites 2010B Bond Principal Payment - (1,410,000) Net cash provided (used) by financing activities - (1,410,000)
Net Increase (Decrease) in Cash 399,032 4,337,806 Appropriation for Reserves (Increase) Decrease in Underground Fund Reserve (94,654) (625,198) (Increase) Decrease in Solar Photovoltaic Rebate Reserve - - (Increase) Decrease in Renewable Energy Credits Net Revenue Reserve 138,988 877,620 (Increase) Decrease in Cap&Trade Net Revenue Reserve 137,626 1,068,086 (Increase) Decrease in Low Carbon Fuel St Rev Reserve (968,204) (917,376) - Subtotal (Increase) Decrease in in Reserves (786,244) 403,132 Total Increase (Decrease) in Cash (387,211) 4,740,938
Cash - Jun 30, 2020 51,885,661 Cash - December 31, 2020 Cash 57,013,810 - January 31, 2021 56,626,599 56,626,599
Additional Information
Reserves for Special Purposes at 6/30/2020 38,851,826 Reserves for Special Purposes at 12/31/2020 37, 662,450 Net Increase (Decrease) for the period 786, 244 (403,132) Reserves for Special Purposes at 1/31/2021 38, 448,694 38,448,694 Alameda Municipal Power AGENDA ITEM 4.C.18 Utility Plant Detail--Electric 3/15/2021 For the Month of January, 2021
General Utility General Accumulated Net Utility Ledger Plant Ledger Depreciation Plant Transmission Land & Land Rights 350.101 2501 $69,332.79 2822 $0.00 $69,332.79 Structures & Improvements - West Crossing 351.101 2522 74,662.06 2822 66,111.72 8,550.34 Structures & Improvements - East Crossing 352.101 2522 68,948.27 2822 62,812.53 6,135.74 Transformer Towers & Fixtures 354.101 2522 461,706.86 2822 461,686.56 20.30 Transformer Poles & Fixtures 355.101 2522 816,565.71 2822 744,028.55 72,537.16 Overhead Conductors & Devices 356.101 2522 846,458.59 2822 641,903.05 204,555.54 Underground Conduits 357.101 2522 366,075.48 2822 354,394.92 11,680.56 Underground Conductors & Devices 358.101 2522 1,359,176.41 2822 1,331,170.39 28,006.02 Total Transmission $4,062,926.17 $3,662,107.72 $400,818.45 Distribution Land & Land Rights - Grand St. Station 360.101 2501 36,867.29 0.00 36,867.29 Structures & Improvements -Grand St.Cartwright & Jenny Substations 361.101 2511 2,498,155.22 2811 1,568,881.39 929,273.83 Station Equipment - Grand St. Station 362.101 2521 946,631.33 2821 448,848.14 497,783.19 Station Equipment - Cartwright Station 362.401 2521 2,610,553.90 2821 1,315,814.78 1,294,739.12 Station Equipment - Jenny Station 362.501 2521 3,961,146.84 2821 1,946,222.95 2,014,923.89 Storage Battery - Jenny Station 363.501 2521 51,194.42 2821 51,194.42 0.00 Poles Towers & Fixtures 364.101 2521 9,920,309.05 2821 7,639,905.31 2,280,403.74 Overhead Conductors & Devices 365.101 2521 9,810,070.89 2821 7,315,799.67 2,494,271.22 Underground Conduits 366.101 2521 13,362,896.17 2821 10,084,675.09 3,278,221.08 Underground Conductors & Devices 367.101 2521 22,035,317.10 2821 18,294,715.48 3,740,601.62 Line Transformers 368.101 2521 7,405,491.22 2821 5,255,944.03 2,149,547.19 Services 369.101 2521 4,137,156.18 2821 3,675,573.55 461,582.63 Meters 370.101 2521 9,187,422.57 2821 2,331,410.08 6,856,012.49 Land & Land Rights - Jenny Station (50 Years) 360.101 2501 66,500.00 2901 0.00 66,500.00 Total Distribution $86,029,712.18 $59,928,984.89 $26,100,727.29
General Plant Land & Land Rights - Grand St. Station 389.101 2501 $47,443.89 2811 $0.00 $47,443.89 Structures & Improvements 390.101 2511 5,669,913.39 2811 3,136,388.70 2,533,524.69 Office Mechanical Equipment 391.101 2551 1,288,301.07 2851 1,177,819.78 110,481.29 Office Furniture & Other Equipment 391.201 2571 923,119.31 2871 676,650.02 246,469.29 Computer Equipment & Software 391.301 2561 3,503,773.72 2861 3,246,857.95 256,915.77 Office Equipment-System Software-Cayenta 391.306 2591 1,012,361.62 2891 942,715.17 69,646.45 Dispatch Center Equipment 391.401 2551 421,701.98 2851 259,710.02 161,991.96 Transportation Equipment 392.101 2581 42,378.98 2881 42,378.98 0.00 Transportation Vehicles 392.105 2581 40,033.70 2881 37,837.62 2,196.08 Construction Vehicles 392.106 2581 3,112,711.38 2881 2,616,950.14 495,761.24 Electric Transportaion Vehicles 392.107 2581 210,615.13 2881 102,100.81 108,514.32 Electric Construction Vehicles 392.108 2581 0.00 2881 0.00 0.00 Stores Equipment 393.101 2551 128,116.93 2851 83,111.74 45,005.19 Shop & Garage Equipment 394.101 2551 25,712.82 2851 24,383.00 1,329.82 Tools & Work Equipment 394.201 2551 804,211.53 2851 784,121.02 20,090.51 Communication Equipment 397.101 2551 6,689,744.20 2851 6,533,832.20 155,912.00 Miscellaneous Equipment 398.101 2551 535,776.96 2851 382,327.35 153,449.61 Total General Plant $24,455,916.61 $20,047,184.50 $4,408,732.11 Subtotal $114,548,554.96 $83,638,277.11 $30,910,277.85
Construction Work In Progress (CWIP) 2701 2704 $6,754,056.46 $6,754,056.46 Grand Total $121,302,611.42 $83,638,277.11 $37,664,334.31 AGENDA ITEM NO: 4.C.19 MEETING DATE:02/23/2021
Alameda Municipal Power Calculation of Non-Power Costs for Balancing Account Fiscal Year (FY) 2021 Year To Date (YTD) through January 2021
FY 2020 FY 2021 FY 2021 FY 2021 Annual Annual Year-to-Date Year-to-Date Budget Budget Budget Actual Revenue Sale of Electricity - see Income Statement (4.C.13) 61,982,673 62,731,000 36,850,439 36,926,052 Other Revenue SB-1 Solar Surcharge - - - - Other Electric Operating Sales (minus line19) 403,773 397,749 232,021 95,165 Cap&Trade Sales Income & Low Carbon Fuel Standard Credit Sale 1,787,256 2,430,266 1,417,655 1,573,985 Renewable Eenergy Credits (REC) Sales Income 1,167,720 - - - Interest Income 1,200,000 1,225,000 714,583 558,396 Less Restricted Interest Income for Trustee Account - - - (129) Non-Operating Income/Deduction Net 379,110 387,860 216,323 82,262 Reserves Reduction - Release Reserves funds for designated usages 4,550,600 5,695,850 3,322,579 2,511,992 9,488,459 10,136,725 5,903,161 4,821,672
Retainments: Underground Utility District Reserve Funding (1,240,000) (1,255,000) (732,083) (732,083) Retainments: Solar Surcharge - - - - Retainments: Cap&Trade and REC Sales Net Revenue (2,954,976) (2,430,266) (1,417,655) (573,985) Retainments: Low Carbon Fuel Standard - - - (1,000,000) (4,194,976) (3,685,266) (2,149,739) (2,306,068)
Adjusted Net Revenue 67,276,156 69,182,459 40,603,861 39,441,655
Purchased Power (29,968,408) (33,160,453) (19,075,947) (17,527,416)
Expense Items Included In Non-Power Costs Total Operating Expenses - see Income Statement (4.C.13) (56,396,068) (61,427,374) (35,611,195) (29,826,861) Remove Purchased Power included in Total Operating Expenses 29,968,408 33,160,453 19,075,947 17,527,416 Non-Power Operating Expenses (26,427,660) (28,266,921) (16,535,248) (12,299,445) Remove Depreciation 3,400,000 3,400,000 1,983,333 2,275,978 Non-Power Operating Expenses Excluding Depreciation (23,027,660) (24,866,921) (14,551,914) (10,023,468)
Debt Related Charges interest (1,274,136) (1,199,505) (699,507) (699,507) Less Debt Cost Amortization 62,000 62,000 36,165 35,963 Payment In Lieu Of Taxes /Return On Investment (1,518,721) (1,549,096) (903,587) (894,833) Non-Operating Revenue & Expenses (2,730,857) (2,686,601) (1,566,930) (1,558,378)
Capital Projects (see 4.C.9) (7,009,920) (8,178,807) (4,770,971) (1,497,793)
Total Non-Power Costs (32,768,437) (35,732,329) (20,889,815) (13,079,639)
Recap of Income and Expenses Sale of Electricity 61,982,673 62,731,000 36,850,439 36,926,052 Other Revenue Sources 9,488,459 10,136,725 5,903,161 4,821,672 Retainments (4,194,976) (3,685,266) (2,149,739) (2,306,068) Purchased Power Costs (29,968,408) (33,160,453) (19,075,947) (17,527,416) Total Non-Power Costs Excluding City Transfer (32,768,437) (35,732,329) (20,889,815) (13,079,639) Transfer to City of Alameda General Fund (3,990,228) (4,014,884) (2,341,882) (2,407,200) Over (Under) Collection 549,083 (3,725,207) (1,703,783) 6,427,400 AGENDA ITEM NO: 4.D.1 MEETING DATE: 03/15/2021 ADMINISTRATIVE REPORT NO.: 2021-48
To: Honorable Public Utilities Board Submitted by: ______/s/______Robert J. Orbeta AGM - Administration
From: Carolina E Mazilu Senior Utility Accountant Approved by: ______/s/______Nicolas Procos General Manager
Subject: Treasurer’s Report for the Month Ending January 31, 2021 ______
RECOMMENDATION
For information, no action is recommended.
BACKGROUND
This report is submitted in compliance with Alameda Municipal Power’s (AMP) policy and the State of California Government Code Sections 53607 and 53646(b).
DISCUSSION
Funds have been managed and invested in compliance with the Public Utilities Board’s Resolution No. 5178. AMP’s expenditure requirements for the next six-months are covered by anticipated revenues and the liquidity of current investments.
Investments The total book value of AMP’s investment portfolio is $82,028,113. The current market value of the portfolio totaled $82,186,148. Investments are held to maturity or may be sold when prices yield a gain on the sale. The overall portfolio has a weighted average interest rate of 0.57 percent.
Interest Rates During the period, the rate on 3-Years US Treasury Bills increased 2 basis points from 0.17 percent on December 31, 2020 to 0.19 percent on January 31, 2021. The rate on the Secured Overnight Financial Rate (SOFR) decreased 1 basis points from 0.07 percent on December 31, 2020 to 0.06 percent on January 31, 2021. The rate on Local Agency Investment Fund (LAIF) decreased 8 basis points from 0.54 percent on December 31, 2020 to 0.46 percent on January 31, 2021.
BUDGET CONSIDERATION/FINANCIAL IMPACT
None
EXHIBITS
A. Investment Portfolio Summary and Detail B. Supplemental Schedule - Sources of Investments & Investment Portfolio Alameda Municipal Power INVESTMENT PORTFOLIO SUMMARY January 31, 2021
Current Book Unrealized Percent of Average Market Value Value Gain (Loss) Total Return
Local Agency Investment Fund $55,908,059 $55,908,059 $0 68.16% 0.458% U.S. Government Agencies 1,949,205 1,919,055 30,150 2.34% 0.292% U.S. Government Bonds 481,790 491,688 -9,898 0.60% 5.500% Cash & Money Market 85,185 85,185 0 0.10% 0.010% Municipal Bonds 7,906,996 7,929,748 -22,752 9.67% 1.335% Corporate Fixed Income 8,179,319 8,091,611 87,709 9.86% 0.694% Certificates of Deposit(s) 7,675,594 7,602,768 72,826 9.27% 0.253%
Total Investment Portfolio and Weighted Average Return $82,186,148 $82,028,113 $158,035 100.00% 0.572%
Fiscal Year (FY) 2021 Budgeted Interest Income $1,225,000 FY2021 Year-to-date Interest Income Estimated $558,268 Percent of Interest Received To Date 45.6%
Actual Budgeted FY 2019 Interest Income $1,534,102 $300,000 FY 2018 Interest Income $826,098 $300,000 FY 2017 Interest Income $470,818 $120,000 FY 2016 Interest Income $316,332 $101,000 FY 2015 Interest Income $173,594 $105,000
AGENDA ITEM NO: 4.D MEETING DATE: 03/15/2021 EXHIBIT B: PAGE 1 of 4 Alameda Municipal Power DETAIL OF INVESTMENT PORTFOLIO January 31, 2021
Investment Custodian / Par Coupon Current Date of Date of % of Yield to Call Book Value Description S&P Rating Value Rate Market Value Investment Maturity Portfolio Maturity Date Purchase Price
Local Agency Investment Fund (LAIF) LAIF 0.458% $ 55,908,059 10/01/20 10/31/20 68.16% 0.458% $ 55,908,059
Cash & Money Market Funds $ 85,185 0.010% $ 85,185 10/31/20 0.10% 0.010% $ 85,185 Subtotal $85,185 $85,185 Subtotal $85,185
U.S. Government Treasuries & Agencies Federal Agric Mtg Corp Mnts B - 2.500%, 1/30/2023 N/A $ 250,000 2.500% $ 261,730 N/A 01/30/23 0.32% 0.130% $ 259,198 Federal Farm Cr Bks AA+ 250,000 0.290% 249,968 AA+ 11/02/23 0.30% 0.300% 11/02/21 250,000 Federal Natl Mtg Assn AA+ 300,000 0.380% 299,112 AA+ 08/25/25 0.36% 0.390% $ 299,313 Tenn Val Auth Cpn Strip - 05/01/2024 N/A 350,000 0.000% 343,518 N/A 05/01/24 0.42% 0.580% 347,193 US Treasury Strip 8/15/2024 N/R 500,000 0.000% 494,970 N/R 08/15/24 0.57% 0.280% 469,315 US Treasury Strip 5/15/2021 N/R 300,000 0.000% 299,907 N/R 05/15/21 0.36% 0.070% 294,036 Subtotal $500,000 $1,949,205 Subtotal 2.34% 0.292% $1,919,055
U.S. Government Bonds US Department of Housing & Urban Development 5.660%, 08/01/23 - $ 480,000 5.660% $ 481,790 - 08/01/23 0.60% 5.500% 02/01/20 $ 491,688 $480,000 $481,790 0.60% 5.500% $491,688
Corporate Bonds Alabama Pwr Co - 2.80%, 04/01/2025 A $ 250,000 2.800% $ 268,440 06/26/20 04/01/25 0.33% 1.000% 01/01/25 $ 270,233 Alibaba Group Hldg Ltd 2.800%, 06/06/2023 A+ 250,000 2.800% 261,535 01/24/20 06/06/23 0.31% 0.960% 05/06/23 257,973 Alibaba Group Holding - 3.600%, 11/28/2024 A+ 285,000 3.600% 311,311 10/14/20 11/28/24 0.38% 1.160% 08/28/24 315,016 Amazon Com Inc - 3.80%, 12/05/2024 AA- 200,000 3.800% 223,712 11/09/20 12/05/24 0.27% 0.630% 09/05/24 225,430 Apple Inc. 2.700%, 05/13/2022 AA+ 300,000 2.700% 309,855 11/16/17 05/13/22 0.37% 0.160% 305,188 Apple Inc. 3.000%, 02/09/2017 AA+ 250,000 3.000% 268,660 10/14/20 02/09/24 0.33% 0.520% 12/09/23 271,225 Banco Santander S.A. 2.706%, 06/27/24 A 200,000 2.706% 213,236 09/17/19 06/27/24 0.25% 0.710% 202,780 Bank New York Mellon Corp 3.45%, 08/11/2023 A 250,000 3.450% 269,558 09/17/19 08/11/23 0.32% 0.340% 263,130 Barclays Bank Plc - 1.20%, 1/24/2024 A 250,000 1.200% 249,478 08/08/20 01/24/24 0.31% 1.270% 07/24/21 252,130 Barclays Bank PLC 2.3025% 6/19/2023 A 250,000 2.303% 267,125 02/18/20 06/19/23 0.32% 0.989% 260,743 BB&T Co Global Bk Mtn - 2.85%, 4/01/2021 A 250,000 2.850% 250,538 10/03/19 04/01/21 0.31% 1.627% 03/01/21 254,463 Bristol-Myers Sqibb Co 2.000%, 8/1/2022 A+ 250,000 2.000% 256,185 12/06/17 08/01/22 0.30% 0.340% 246,757 Canadian Imp Bk Comm - 0.909, 09/13/2023 A+ 250,000 0.909% 253,198 11/02/20 09/13/23 0.31% 0.219% 254,875 Capital Impact Partners 3.2% 3/15/2024 A 253,000 3.200% 265,448 12/05/19 03/15/24 0.32% 1.580% 261,139 Credit Suisse New York 3.625% 9/9/2024 A+ 250,000 3.625% 276,563 12/05/19 09/09/24 0.33% 0.640% 266,703 International Business Machs Sr Glbl NT2 2.500%, 1/27/2022 A 75,000 2.500% 76,712 11/14/18 01/27/22 0.09% 0.210% 73,103 International Business Machs 3.625%, 02/12/2024 A 175,000 3.625% 191,818 03/10/20 02/12/24 0.23% 0.480% 189,835 Local Initiatives Suport 1.0% 11/15/2025 AA- 500,000 1.000% 499,905 11/23/20 11/15/25 0.61% 0.990% 500,000 Midamerican Energy Co 3.700% 9/15/23 A+ 250,000 3.700% 269,123 02/18/20 09/15/23 0.33% 0.740% 06/15/23 267,110 One Gas Inc 3.610%, 02/01/2024 A 250,000 3.610% 271,498 09/22/20 02/01/24 0.33% 0.710% 11/01/23 274,385 Oracle Corp 1.900%, 9/15/2021 A 250,000 1.900% 252,250 12/06/17 09/15/21 0.30% 0.470% 08/15/21 247,992 Public Storage 2.370%, 9/15/2022 A 250,000 2.370% 257,880 12/06/17 09/15/22 0.30% 0.400% 08/15/22 248,476 Royal Bank of Canada 2.550% 7/16/24 A 250,000 2.550% 267,053 11/27/19 07/16/24 0.31% 0.540% 255,223 Santander UK PLC 4%, 03/13/2024 A 225,000 4.000% 247,986 06/27/19 03/13/24 0.29% 0.630% 239,735 Schlumberger Invt Sa - 3.65% 12/1/2023 A 250,000 3.650% 270,310 09/13/19 12/01/23 0.32% 0.710% 09/01/23 263,475 Schlumberger Invt Sa - 3.65% 12/1/2023 A 250,000 3.650% 270,310 09/08/20 12/01/23 0.33% 0.710% 09/01/23 272,235 Shell International Fin BV 3.400% 8/12/2023 AA- 250,000 3.400% 269,123 02/12/20 08/12/23 0.32% 0.330% 265,393 Southern CA Gas 3.2% 6/15/2025 A+ 250,000 3.200% 276,890 11/09/20 06/15/25 0.34% 0.680% 276,730 Sumitomo Mitsui Banking Corp 3.650%, 07/23/2025 A 250,000 3.650% 279,340 09/10/20 07/23/25 0.35% 0.960% 283,238 Suntrust Bank 3.00% 2/2/2023 A 250,000 3.000% 262,660 12/10/19 02/02/23 0.31% 0.450% 01/02/23 257,990 Toyota Motor Credit Corp - 3.35% 01/08/24 A+ 250,000 3.350% 271,625 05/19/20 01/08/24 0.33% 0.360% 268,910 Subtotal $7,713,000 $8,179,319 9.86% 0.694% $8,091,611
Municipal Bonds Bay Area Toll Auth Calif Toll - 2.254%, 04/01/2024 AA $ 445,000 2.254% $ 469,973 10/21/20 04/01/24 0.57% 0.530% $ 470,209 Brick Twp N J - 4.000%, 11/15/2023 - 250,000 4.000% 273,770 08/19/19 11/15/23 0.32% 1.820% 265,308 California St - GO High Speed PA 2017A 2.367%, 04/01/2022 AA- 250,000 2.367% 256,268 03/04/20 04/01/22 0.31% 0.300% 257,710 Clark Cnty Nev Sch Dist 5.51%, 6/15/2024 A+ 235,000 5.510% 258,065 08/19/19 06/15/24 0.32% 2.730% 264,464 Clark Cnty Nev Sch Dist - 5.51% 6/15/2024 A+ 225,000 5.510% 247,084 07/11/19 06/15/24 0.31% 2.730% 252,092 Colony Tex Loc Dev Corp 3.366% 10/01/2023 AA+ 250,000 3.366% 268,958 09/24/20 10/01/23 0.33% 0.800% 268,735 Cuyahoga Cnty Ohio Ctfs Partn - 5.00%, 12/01/2023 AA- 335,000 5.000% 360,949 08/25/20 12/01/23 0.46% 1.130% 379,150 Fort WorthTX SPL Tax Rev 5% 3/1/2024 - 250,000 5.000% 282,353 07/10/20 03/01/24 0.35% 1.140% 285,153 Garfield Cnty 6%, 09/01/2024 A 250,000 6.000% 283,123 01/14/20 09/01/24 0.35% 2.970% 09/01/21 283,038 Greensboro N C LTD Oblig Tax Bds 2018 - 3.074%, 2/1/2024 AA+ 250,000 3.074% 266,168 08/22/19 02/01/24 0.32% 1.120% 263,275 Laurel Cnty KY Judicial Ctr PU 5%, 3/1/2025 - 200,000 5.000% 235,624 04/17/20 03/01/25 0.28% 1.160% 231,430 Louisiana St Citizens Ppty Ins Corp Assmt Rev -2.64%, 06/01/2024 AA 225,000 2.640% 239,497 09/03/19 06/01/24 0.29% 0.870% 234,950 Louisiana St Univ & Agric & Mechanical College Brd 5%, 07/01/2024 n/a 250,000 5.000% 281,958 08/25/20 07/01/24 0.35% 0.800% 289,088 Massachusetts St Hsg Fin Agy - 3.300%, 06/01/2024 AA 250,000 3.300% 269,025 03/19/20 06/01/24 0.31% 0.590% 257,895 New York ST Dorm Auth St Pers 4.992%, 3/15/2022 AA+ 225,000 4.992% 236,405 02/12/19 03/15/22 0.29% 0.290% 239,756 New Yrok City Fin Auth Revenue 4.867% 8/1/2024 AAA 225,000 4.867% 257,486 12/18/20 08/01/24 0.32% 0.590% 258,944
AGENDA ITEM NO: 4.D MEETING DATE: 03/15/2021 EXHIBIT B: PAGE 2 of 4 Alameda Municipal Power DETAIL OF INVESTMENT PORTFOLIO January 31, 2021
Investment Custodian / Par Coupon Current Date of Date of % of Yield to Call Book Value Description S&P Rating Value Rate Market Value Investment Maturity Portfolio Maturity Date Purchase Price
Oneida CNTY NY Pub Impt BDS 6.500%, 04/15/2023 AA 170,000 6.500% 188,663 11/28/18 04/15/23 0.23% 3.190% 189,329 Pasadena Calif Pension Oblig 3.34%, 5/1/2024 AAA 250,000 3.340% 274,540 08/22/19 05/01/24 0.33% 0.590% 266,780 Plum Boro PA Sch Dist GO Bds B 2.976%, 09/15/2021 AA 200,000 2.976% 203,228 02/05/19 09/15/21 0.24% 0.590% 200,876 Pomona Calif Redev Agy Successor Agy Tax Allocation 3.406%, 2/1/2021 A+ 225,000 3.406% 225,000 12/07/18 02/01/21 0.28% 3.350% 228,220 Portl & Ore Pension Oblg Rev 7.701%, 06/01/2022 n/a 160,000 7.701% 170,648 02/20/19 06/01/22 0.22% 2.880% 178,760 Royse City Tex - 3%, 08/15/2022 AA 250,000 3.000% 260,600 09/24/20 08/15/22 0.32% 0.160% 262,480 Rutgers St Univ NJ - 2.161%, 05/01/2024 A+ 250,000 2.161% 261,615 10/23/20 05/01/24 0.32% 1.080% 259,285 Sacramento CA Transient Occupancy Tax 3.574% 6/1/2022 - 250,000 3.574% 255,405 07/31/20 06/01/22 0.31% 1.780% 257,205 Stockton CA Redev Agy - 2.375%, 09/01/2022 AA 250,000 2.375% 255,810 10/23/20 09/01/22 0.32% 0.810% 258,768 University Alaska Univ Revs - 4%, 10/1/2023 A+ 225,000 4.000% 238,928 09/03/19 10/01/23 0.30% 1.500% 247,772 Washington Fed Hwy Grnt Anticrev - Sr 520 Corridor Prog 5%, 09/01/2021 AA 250,000 5.000% 257,100 03/12/20 09/01/21 0.32% 0.120% 263,888 West Covina CA Pub Finf Auth 2.168% 8/1/2024 A+ 100,000 2.168% 101,157 07/24/20 08/01/24 0.12% 1.160% 100,000 West Covina CA Pub Finf Auth 2.318% 8/1/2025 A+ 250,000 5.000% 255,800 08/03/20 08/01/25 0.31% 1.330% 256,755 West Covina Calif Pub Fing Auth Lease Rev 3.768%, 05/01/2022 A+ 225,000 3.768% 233,255 12/13/18 05/01/22 0.28% 1.380% 229,500 Yuba Cnty Calif Ctfs Partn - Clean Renew Energy Proj 3.750%, 12/01/2022 AA 225,000 3.750% 238,545 12/13/18 12/01/22 0.28% 1.900% 228,938 Subtotal $7,395,000 $7,906,996 9.67% 1.335% $7,929,748
Certificates of Deposit Allegiance BK Houston, TX $ 250,000 2.200% $ 259,260 10/26/17 11/03/22 0.30% 0.080% $ 250,000 Ally Bk Midvale Utah - Death Put 250,000 2.500% 258,210 05/28/19 06/06/22 0.30% 0.040% 250,000 American Express Centurion Salt Lake City, UT 72,000 3.593% 74,552 09/11/17 09/06/22 0.09% 0.170% 72,252 American Express Centurion Salt Lake City, UT 177,000 3.599% 183,331 09/08/17 09/12/22 0.22% 0.170% 177,000 Bank Hapoalim BM NY 0.2% 11/17/2022 250,000 0.200% 250,448 11/12/20 11/17/22 0.30% 0.100% 250,000 BMO Harris Bank 0.55% 7/29/2024 250,000 0.550% 247,733 07/28/20 07/29/24 0.30% 0.810% 10/29/20 250,000 BMO Harris Bank 0.3% 8/28/2023 250,000 3.000% 247,655 08/12/20 08/28/23 0.30% 0.700% 250,000 BMW BK N Amer Salt Lake City, UT 250,000 1.800% 258,018 12/17/19 12/20/22 0.30% 0.090% 250,000 Capital One Bank (Usa) Nat 2.650%, 05/30/2024 250,000 2.650% 270,143 09/15/20 05/30/24 0.33% 0.220% 269,721 Capital One NA Mclean, VA 74,000 3.389% 76,706 09/19/17 09/27/22 0.09% 0.080% 74,000 Citibank NA Sioux Falls SD 250,000 3.550% 273,673 12/10/19 11/24/23 0.32% 0.170% 265,225 Comenity Capital Bk Draper UT 250,000 2.700% 270,735 04/27/20 06/14/24 0.32% 0.220% 266,420 Enerbank USA Salt Lake City UT 225,000 1.100% 232,261 04/17/20 03/13/25 0.27% 0.310% 222,806 First National Bank Albany TX 0.2% 7/25/22 200,000 0.200% 200,348 07/07/20 07/25/22 0.24% 0.080% 200,000 Flagstar Bk Fsb Troy Mich - 1.25% 04/30/25 250,000 1.250% 259,708 05/12/20 04/30/25 0.31% 0.330% 253,122 Goldman Sachs Bk Usa - 3.3%, 8/21/2024 250,000 3.300% 271,658 08/12/20 01/31/24 0.34% 0.390% 274,881 Goldman Sachs Bk Usa - 2.45%, 08/16/24 225,000 2.450% 242,471 09/29/20 08/16/24 0.29% 0.240% 241,790 Magnolia Bk Inc KY - .40%, 04/30/2025 300,000 0.400% 300,273 10/14/20 04/30/25 0.37% 0.380% 300,000 Marlin Business Bank Salt Lake 0.1% 12/30/2022 125,000 0.100% 124,984 12/18/20 12/30/22 0.15% 0.110% 125,000 Merrick Bank, South Jordan, UT 223,000 3.182% 226,091 10/03/17 10/12/21 0.27% -0.020% 223,000 MID MO Bk Springfield MO 250,000 0.900% 256,023 04/27/20 03/25/25 0.31% 0.310% 250,813 Morgan Stanley Bk N A - 3.4%, 12/06/2022 250,000 3.400% 265,275 09/29/20 12/06/22 0.33% 0.080% 267,061 Morgan Stanley PVT Bank Pur NY - 3.55% 11/24/23 240,000 3.550% 262,726 05/29/20 11/24/23 0.32% 0.170% 262,511 Morgan Stanley Bank 3.2% 5/24/2023 125,000 3.200% 133,860 12/18/20 12/18/20 0.16% 0.120% 133,614 New York Community Bank - 0.150%, 11/09/2022 250,000 0.150% 250,228 10/27/20 11/09/22 0.30% 0.100% 250,000 New York Community Bank 0.2% 12/12/22 135,000 0.200% 135,243 12/09/20 12/12/22 0.16% 0.110% 135,000 Sallie Mae Bk Slt Lake City Ut 250,000 2.500% 257,980 05/20/19 05/23/22 0.30% 0.040% 250,000 State Bk India New York N Y - 3.25%, 9/25/2023 250,000 3.250% 269,008 03/10/20 09/25/23 0.33% 0.360% 268,571 Synchrony Bank 3.3% 1/24/2024 250,000 3.300% 271,553 07/28/20 01/24/24 0.33% 0.568% 273,563 Synchrony Bank 3.3% 2/28/2024 255,000 3.300% 277,603 07/07/20 02/28/24 0.34% 0.592% 279,842 Synchrony Bank - 3.2%, 5/18/2023 250,000 3.200% 267,603 03/04/20 05/18/23 0.32% 0.120% 266,576 Texas Exchange Bank SSB 1.9%, 02/02/2024 250,000 0.700% 250,180 05/26/20 06/07/24 0.30% 0.680% 09/08/20 250,000 Texas Exchange BK Crowley 0.45%, 08/21/2024 250,000 45.000% 250,060 08/12/20 08/21/24 0.30% 0.440% 11/21/20 250,000 Total $7,376,000 $7,675,594 9.27% 0.253% $7,602,768 Grand Total $ 82,186,148 0.572% $ 82,028,113
(1) Portfolio details are based on available third-party statements as of 01/31/21
AGENDA ITEM NO: 4.D MEETING DATE: 03/15/2021 EXHIBIT B: PAGE 3 of 4 Alameda Municipal Power Supplemental Schedule Sources of Investments & Investment Portfolio January 31, 2021
SOURCES FOR INVESTMENTS
Account Operating Funds $16,121,508 Liabilities Balancing Account 10 3401 27,350,493 Clean Future Fund 10 3147 100,439 Donations to Alameda United School District 10 3151 6,978 Reserves For Special Purposes Insurance Reserve Special Fund 10 2107 1,200,000 Underground Fund Carryforward 12/31/2020 10 2111 $ 12,787,400 Fiscal Year (FY) 2021 - January, 2021 Undergrounding Funding 10 2111 104,583 Underground Special Fund Used in January, 2020 - FY 2021 10 2111 (9,930) Net - Underground Fund Available (Deficiency) 12,882,054 Renewable Energy Credits Net Revenue Reserve 10 2113 19,159,952 Cap & Trade Net Revenue Reserve 10 2114 2,551,740 Low Carbon Fuel Standards Revenue Reserve 10 2115 2,654,948 Total Sources For Investments $82,028,113
Operating Funds, 16,121,508, 20% Reserves, 38,448,694, 47%
Liabilities, 27,457,911, 33% Source for Investments
AGENDA ITEM NO: 4.D MEETING DATE: 03/15/2021 EXHIBIT B: PAGE 4 of 4 AGENDA ITEM NO.: 4.E.1 MEETING DATE: 03/15/2021 ADMINISTRATIVE REPORT NO.: 2021-49 ACTION: BY MOTION
To: Honorable Public Utilities Board Submitted by: ______/S/ Rebecca Irwin AGM-Customer Resources
From: Rebecca Irwin Approved by: ______/S/ AGM – Customer Resources Nicolas Procos General Manager
Subject: By Motion, Approve Amendment #3 to Professional Services Agreement PS 09-15- 01 with Ecology Action to Extend the Term of the Contract to December 31, 2021
RECOMMENDATION
By motion, approve Amendment #3 to Professional Services Agreement PS 09-15-01 with Ecology Action to extend the term of the contract to December 31, 2021.
BACKGROUND
On December 14, 2015, the Public Utilities Board (Board) authorized the General Manager to enter into an agreement with Ecology Action to provide a direct-install lighting; heating, ventilation, and air conditioning (HVAC); and refrigeration program for non-residential customers. The term of the agreement was from January 1, 2016, to December 31, 2017, for an amount not to exceed $1,100,000, with an option to extend the contract for up to a total of three additional years. The energy savings target for the 2-year program was 3,000 megawatt-hours (MWh) and its budget was funded by the revenue from the short-term sale of Alameda Municipal Power’s (AMP) renewable energy credits (RECs).
On January 22, 2018, the Board authorized the General Manager to extend the agreement with Ecology Action for two years through January 31, 2020, and increase the total compensation by an amount not to exceed $1,840,000. The energy-savings target for the program was increased to 7,000 MWh.
On April 27, 2020, the Board authorized the General Manager to extend the agreement with Ecology Action through February 28, 2021, and to update the scope of service. The scope was updated to reflect changes in the auditing and review process as well as a decrease in program administration fees from $0.23 to $0.15 per kilowatt hour (kWh). Ecology Action’s contract is performance-based, so the vendor is only paid when it has successfully completed an installation. Customer rebates remain at $0.23 per kWh.
The direct-install program, called the “Energy Plus” program, is focused on removing the barriers to non-residential customers to complete lighting, HVAC, and refrigeration retrofits. The barriers include knowledge of energy-efficient technologies--particularly light-emitting AGENDA ITEM NO.: 4.E.2 MEETING DATE: 03/15/2021 ADMINISTRATIVE REPORT NO.: 2021-49 diodes (LEDs)--high costs, ability and time to hire a qualified installer, retrofit project costs, and compliance with all applicable codes and standards. Under this direct-install program, Ecology Action markets the program, conducts energy audits that include project design and specifications, encourages customers to complete the retrofit, complies with all applicable codes, refers the customer to a pre-approved contractor to complete the retrofit, and upon completion of the retrofit, surveys the customer to determine satisfaction with the program. Additionally, Ecology Action provides oversight and inspection of all retrofits, does the processing and payment of rebates, and provides program tracking and reporting. Unfortunately, due to the COVID-19 pandemic, the Energy Plus program fell short of its 7,000 MWh goal, having installed and reported 6,229 MWh in energy savings as of February 18, 2021. Ecology Action’s field staff were prevented from visiting businesses for a number of months due to the shelter-in-place orders and businesses were hesitant to sign off on projects due to economic uncertainty.
DISCUSSION
The contract with Ecology Action ended on February 28, 2021; however, there is just over $400,000 still remaining in the program budget of $2.94 million. The table below provides a snapshot of the expenditures thus far.
Table 1: Summary of Ecology Action contract from Jan. 2016 through Feb. 2021 Total Contract Total Invoiced Total Invoiced Amount Total Unspent in
(Jan 2016 – Jan (Jan 2016 – Jan (April 2020 Contract 2020) 2020) – Feb 2021) Program budget $2,940,000.00 $2,334,705.01 $203,360.75 $401,934.24 Customer $1,613,150.68 $1,261,283.88 $123,086.77 $228,780.03 Incentives Vendor $1,326,849.32 $1,073,421.13 $80,273.98 $173,154.21 Performance kWh saved 7,013,698.00 5,694,402.46 535,159.86 784,135.68
There are several projects in the pipeline for the Energy Plus program. However, due to the pandemic, projects have been postponed until Spring 2021, which is past the end of the current Ecology Action contract. These projects would result in approximately 760,000 kWh in energy savings.
Staff recommends amending the contract with Ecology Action to extend the Energy Plus program through December 31, 2021, in order to expend all funds in the contracted budget. There would be no changes to the scope nor to the program administration fees or customer incentives. Rather, the proposed extension to the term of the contract would enable customers in the pipeline to complete their projects. Leftover project funds after the three projects would be used for any other projects that come up prior to December 31, 2021.
AGENDA ITEM NO.: 4.E.3 MEETING DATE: 03/15/2021 ADMINISTRATIVE REPORT NO.: 2021-49
NEXT STEPS
Upon Board authorization, the contract amendment with Ecology Action will be fully executed and work will begin to implement the extension of the Energy Plus program.
FINANCIAL IMPACT
There are sufficient funds in the current fiscal year (FY) 2021 budget for this program and it will be included in the proposed budget for FY 2022. The Board previously approved the use of the proceeds from the sale of renewable energy credits.
LINKS TO SRATEGIC GOALS AND METRICS
• Sustainability: Strategy 2: Promote energy efficiency and building electrification • Customer Experience: Strategy 3: AMP will maximize opportunities to meet customer needs and improve engagement
EXHIBITS
A. Professional Services Agreement PS 09-15-01 B. Amendment #1 to Professional Services Agreement PS 09-15-01 C. Amendment #2 to Professional Services Agreement PS 09-15-01 D. Amendment #3 to Professional Services Agreement PS 09-15-01
AGENDA ITEM NO.: 4.E MEETING DATE: 03/15/2021 EXHIBIT A OR\G\NAL CONTRACTOR AGREEMENT
PS 09-15-01
THIS AGREEMENT, entered into this I f�ay of k 2015, by and between ALAMEDA MUNICIPAL POWER, a department of the CITY OF ALAMEDA, a municipal corporation (hereinafter referred to as "AMP"), and ECOLOGY ACTION, a California corporation, whose address is 877 Cedar Street, Suite 240, Santa Cruz, CA 95060 (hereinafter referred to as "Contractor"), is made with reference to the following: RECITALS:
A. AMP is a department of the City of Alameda, a municipal corporation duly organized and validly existing under the laws of the State of California with the power to carry on its business as it is now being conducted under the statutes of the State of California and the Charter of the City.
B. AMP has a need for a Program Administrator for a Nonresidential Direct-Install Lighting, Heating Ventilation and Air Conditioning, and Refrigeration Retrofit Program. On September 16, 2015 AMP issued a Request for Proposal and reached out to the consultant's on AMP's bidders list, and posted the Request for Proposal on AMP's website. AMP interviewed qualified firms, and selected the firm that best meets AMP's needs.
C. Contractor is specially trained, experienced and competent to perform the special services which will be required by this Agreement.
D. Contractor possesses the skill, experience, ability, background, certification and knowledge to provide the services described in this Agreement on the terms and conditions described herein.
E. AMP and Contractor desire to enter into an agreement for materials and labor for implementation and ongoing services upon the terms and conditions herein. NOW, THEREFORE, it is mutually agreed by and between the undersigned parties as follows:
1. TERM:
The term of this Agreement shall commence on the 4th day of January 20 16, and shall terminate on the 31st day of December 2017 unless terminated earlier as set forth herein.
This agreement may be mutually amended on a year-by-year basis, for up to three (3) additional years, based on satisfactory performance of all aspects of this contract.
2. SERVICES TO BE PERFORMED:
Contractor shall perform each and every service set forth in Exhibit "A" which is attached hereto and incorporated herein by this reference.
3. COMPENSATION TO CONTRACTOR:
Contractor shall be compensated for services performed pursuant to this Agreement in the amount set forth in Exhibit "B" which is attached hereto and incorporated herein by this PS 09-15-01 reference. Payment shall be made by checks drawn on the treasury of the City, to be taken from the AMP fund.
Total compensation for identified work scope is not to exceed amount of $1,100,000.00.
4. TIME IS OF THE ESSENCE:
Contractor and AMP agree that time is of the essence regarding the performance of this Agreement.
5. STANDARD OF CARE:
Contractor agrees to perform all services hereunder in a manner commensurate with the preva iling standards of li ke professionals in the San Francisco Bay Area and agrees that all services shall be performed by qualified and experienced personnel who are not employed by AMP nor have any contractual relationship with AMP.
6. INDEPENDENT PARTIES:
Contractor hereby declares that it is engaged in an independent business and agrees to perform its services as an independent contractor and not as the agent or employee of the City. The manner and means of conducting the work are under the control of Contractor, except to the extent they are limited by statute, rule or regulation and the express terms of this Agreement. No civil service status or other right of employment will be acquired by virtue of Contractor's services. None of the benefits provided by AMP to its employees, including but not limited to, unemployment insurance, wor kers' compensation plans, vacation and sick leave are available from AMP to Contractor, its employees or agents. Deductions shall not be made for any state or federal taxes, FICA payments, PERS payments, or other purposes normally associated with an employer-employee relationship from any fees due Contractor. Payments of the above items, if required, are the responsibility of Contractor.
7. IMMIGRATION REFORM AND CONTROL ACT (IRCA):
Contractor assumes any and all responsibility for verifying the identity and employment authorization of all of his/her employees performing work hereunder, pursuant to all applicable IRCA or other federal or state rules and regulations. Contractor shall indemnify, defend, and hold AMP harmless from and against any loss, damage, liability, costs or expenses arising from any noncompliance of this provision by Contractor.
8. NON-DISCRIMINATION:
Consistent with AMP's policy that harassment and discrimination are unacceptable employer/employee conduct, Contractor agrees that harassment or discrimination directed toward a job applicant, an AMP employee, or a citizen by Contractor or Contractor's employee or subcontractor on the basis of race, religious creed, color, national origin, ancestry, handicap, disability, marital status, pregnancy, sex, age, or sexual orientation will not be tolerated. Contractor agrees that any and all violations of this provision shall constitute a material breach of this Agreement.
2 PS 09-15-01 9. INDEMNIFICATION:
Contractor shall indemnify, defend, and hold harmless City, its City Council, boards, commissions, officials, and employees ("lndemnitees") from and against any and all loss, damages, liability, claims, suits, costs and expenses whatsoever, including reasonable attorneys' fees ("Claims"), arising from or in any manner connected to Contractors' negligent act or omission, whether alleged or actual, regarding performance of services or work conducted or performed pursuant to this Agreement. If Claims are filed against Indemnitees which allege negligence on behalf of the Contractor, Contractor shall have no right of reimbursement against Indemnitees for the costs of defense even if negligence is not found on the part of Contractor. However, Contractor shall not be obligated to indemnify Indemnitees from Claims arising from the sole or active negligence or willful misconduct of Indemnitees.
Indemnification For Claims for Professional Liability: As to Claims for professional liability only, Contractor's obligation to defend Indemnitees (as set forth above) is limited to the extent to which its professional liability insurance policy will provide such defense costs.
10. INSURANCE:
On or before the commencement of the term of this Agreement, Contractor shall furnish AMP with certificates showing the type, amount, class of operations covered, effective dates and dates of expiration of insurance coverage in compliance with paragraphs I OA, B, C, D and E. Such certificates, which do not limit Contractor's indemnification, shall also contain substantially the following statement: "Should any of the above insurance covered by this certificate be canceled or coverage reduced before the expiration date thereof, the insurer affording coverage shall provide thirty (30) days' advance written notice to AMP, City of Alameda by certified mail, Attention: Ris k Manager."
It is agreed that Contractor shall maintain in force at all times during the performance of this Agreement all appropriate coverage of insurance required by this Agreement with an insurance company that is acceptable to AMP and licensed to do insurance business in the State of California.
Endorsements naming AMP, City of Alameda, its City Council, boards and commtss10ns, officers and employees, as additional insured shall be submitted with the insurance certificates.
A. COVERAGE:
Contractor shall maintain the following insurance coverage:
(I) Workers' Compensation:
Statutory coverage as required by the State of California.
(2) Liability:
Commercial general liability coverage in the following minimum limits:
Bodily Injury: $2,000,000 each occurrence
$3,000,000 aggregate - all other
3 PS 09-15-0 I Property Damage: $1,000,000 each occurrence
If submitted, combined single limit policy with aggregate limits in the amounts of $3,000,000 will be considered equivalent to the required minimum limits shown above.
(3) Automotive:
Comprehensive automotive liabi lity coverage in the following minimum limits:
Bodi ly Injury: $500,000 each occurrence
Property Damage: $100,000 each occurrence
or
Combined Single Limit: $1,000,000 each occurrence
( 4) Professional Liability:
Professional liability insurance which includes coverage for the professional acts, errors and omissions of Contractor in the amount of at least $1,000,000.
B. SUBROGATION WAIVER:
Contractor agrees that in the event of loss due to any of the perils for which he/she has agreed to provide comprehensive general and automotive liability insurance, Contractor shall loo k solely to his/her insurance for recovery. Contractor hereby grants to AMP, on beha lf of any insurer providing comprehensive genera l and automotive liability insurance to either Contractor or AMP with respect to the services of Contractor herein, a waiver of any right to subrogation which any such insurer of said Contractor may acquire against AMP by virtue of the payment of any loss under such insurance.
C. FAILURE TO SECURE:
If Contractor at any time during the term hereof shou ld fail to secure or maintain the foregoing insurance, AMP shal l be permitted to obtain such insurance in the Contractor's name or as an agent of the Contractor and shall be compensated by the Contractor for the costs of the insurance premiums at the maximum rate permitted by law and computed from the date written notice is received that the premiums have not been paid.
D. ADDITIONAL INSURED:
AMP, City of Alameda, its City Council, boards and commissions, officers, and employees shall be named as an additional insured under all insurance coverages, except any professional liability insurance, required by this Agreement. The naming of an additional insured shall not affect any recovery to which such additional insured would be entit led under this policy if not named as such additional insured. An additional insured named herein shall not be held liable for any premium, deductible portion of any loss, or expense of any nature on this policy or any extension
4 PS 09-15-01 thereof. Any other insurance held by an additional insured shall not be required to contribute anything toward any loss or expense covered by the insurance provided by this policy.
E. SUFFICIENCY OF INSURANCE:
The insurance limits required by AMP are not represented as being sufficient to protect Contractor. Contractor is advised to confer with Contractor's insurance bro ker to determine adequate coverage for Contractor.
11. CONFLICT OF INTEREST:
Contractor warrants that it is not a conflict of interest for Contractor to perform the services required by this Agreement. Contractor may be required to fill out a conf lict of interest form if the services provided under this Agreement require Contractor to ma ke certain governmental decisions or serve in a staff capacity as defined in Title 2, Division 6, Section 18700 of the California Code of Regulations.
12. PROHIBITION AGAINST TRANSFERS:
Contractor shall not assign, sublease, hypothecate, or transfer this Agreement, or any interest therein, directly or indirectly, by operation of law or otherwise, without prior written consent of AMP. Any attempt to do so without said consent shall be null and void, and any assignee, sub lessee, hypothecate or transferee shall acquire no right or interest by reason of such attempted assignment, hypothecation or transfer. However, claims for money by Contractor from AMP under this Agreement may be assigned to a ban k, trust company or other financial institution without prior written consent. Written notice of such assignment shall be promptly furnished to AMP by Contractor.
The sale, assignment, transfer or other disposition of any of the issued and outstanding capital stoc k of Contractor, or of the interest of any general partner or joint venturer or syndicate member or cotenant, if Contractor is a partnership or joint venture or syndicate or co-tenancy, which shall result in changing the control of Contractor, shall be construed as an assignment of this Agreement. Control means fifty percent (50%) or more of the voting power of the corporation.
13. SUBCONTRACTOR APPROVAL:
Unless prior written consent from AMP is obtained, only those people and subcontractors whose names and resumes are attached to this Agreement shall be used in the performance of this Agreement.
In the event that Contractor employs subcontractors, such subcontractors shall be required to furnish proof of wor kers' compensation insurance and shall also be required to carry general, automobile and professional liability insurance in reasonable conformity to the insurance carried by Contractor. In addition, any work or services subcontracted hereunder shall be subject to each provision of this Agreement.
5 PS 09-15-01 14. PERMITS AND LICENSES:
Contractor, at his/her sole expense, shall obtain and maintain during the term of this Agreement, all appropriate permits, certificates and licenses including, but not limited to, a City Business License, that may be required in connection with the performance of services hereunder.
15. REPORTS:
A. Each and every report, draft, work product, map, record and other document, hereinafter co llectively referred to as "Report", reproduced, prepared or caused to be prepared by Contractor pursuant to or in connection with this Agreement, shall be the exc lusive property of AMP. Contractor shall not copyright any Report required by this Agreement and sha ll execute appropriate documents to assign to AMP the copyright to Reports created pursuant to this Agreement. Any Report, information and data acquired or required by this Agreement shall become the property of AMP, and all publication rights are reserved to AMP.
B. All Reports prepared by Contractor may be used by AMP m execution or implementation of:
(I) The original Project for which Contractor was hired;
(2) Completion of the original Project by others;
(3) Subsequent additions to the original project; and/or
(4) Other AMP projects as appropriate.
C. Contractor shal l, at such time and in such form as AMP may require, furnish reports concerningthe status of services required under this Agreement.
D. All Reports required to be provided by this Agreement shall be printed on recycled paper. All Reports shall be copied on both sides of the paper except for one original, which shall be single sided.
E. No Report, information or other data given to or prepared or assembled by Contractor pursuant to this Agreement shall be made available to any individual or organization by Contractor without prior approval by AMP.
16. RECORDS:
Contractor shall maintain comp lete and accurate records with respect to sa les, costs, expenses, receipts and other such information required by AMP that relate to the performance of services under this Agreement.
Contractor shall maintain adequate records of services provided in sufficient detail to permit an evaluation of services. All such records shall be maintained in accordance with generally accepted accounting principles and shall be clearly identified and readily accessible. Contractor sha ll provide free access to such boo ks and records to the representatives of AMP or its designee's at all proper times, and gives AMP the right to examine and audit same, and to ma ke transcripts therefrom as necessary, and to allow inspection of al l work, data, documents, proceedings and activities related to this Agreement. Such records, together with supporting
6 PS 09-15-01 documents, shall be kept separate from other documents and records and shall be maintained for a period of three (3) years after receipt of finalpayment.
If supplemental examination or audit of the records is necessary due to concerns raised by AMP's preliminary examination or audit of records, and AMP's supplemental examination or audit of the records discloses a failure to adhere to appropriate internal financial controls, or other breach of contract or failure to act in good faith, then Contractor shall reimburse AMP for all reasonable costs and expenses associated with the supplemental examination our audit.
17. NOTICES:
All notices, demands, requests or approvals to be given under this Agreement shall be given in writing and conclusively shall be deemed served when delivered personally or on the second business day after the deposit thereof in the United States Mail, postage prepaid, registered or certified,addressed as hereinafterprovided.
All notices, demands, requests, or approvals from Contractor to AMP shall be addressed to AMP at: Alameda Municipal Power 2000 Grand Street Alameda CA 9450 l Attention: Meredith Owens, Project Manager owens({i),alamedamp.com 510-748-394 7
All notices, demands, requests, or approvals from AMP to Contractor shall be addressed to Contractor at: Ecology Action 877 Cedar Street, Suite 240 Santa Cruz, CA 95060 Attention: Deborah Kranefuss, Senior Program Manager [email protected] 831- 426-5925
18. TERMINATION:
In the event Contractor fails or refuses to perform any of the provisions hereof at the time and in the manner required hereunder, Contractor shall be deemed in default in the performance of this Agreement. If such default is not cured within a period of two (2) days after receipt by Contractor from AMP of written notice of default, specifying the nature of such default and the steps necessary to cure such default, AMP may terminate the Agreement forthwith by giving to the Contractor written notice thereof.
AMP shall have the option, at its sole discretion and without cause, of terminating this Agreement by giving seven (7) days' prior written notice to Contractor as provided herein. Upon termination of this Agreement, each party shall pay to the other party that portion of compensation specifiedin this Agreement that is earned and unpaid prior to the effective date of termination.
7 PS 09-15-0l 19. COMPLIANCES:
Contractor shall comply with all state or federal laws and all ordinances, rules and regulations enacted or issued by AMP.
20. CONFLICT OF LAW:
This Agreement shall be interpreted under, and enforced by the laws of the State of California excepting any choice of law rules which may direct the application of laws of another jurisdiction. The Agreement and obligations of the parties are subject to all valid laws, orders, rules, and regulations of the authorities having jurisdiction over this Agreement (or the successors of those authorities.) Any suits brought pursuant to this Agreement shall be filed with the courts of the County of Alameda, State of California.
21. ADVERTISEMENT:
Contractor shall not post, exhibit, display or allow to be posted, exhibited, displayed any signs, advertising, show bills, lithographs, posters or cards of any kind pertaining to the services performed under this Agreement unless prior written approval has been secured from AMP to do otherwise.
22. WAIVER:
A waiver by AMP of any breach of any term, covenant, or condition contained herein shall not be deemed to be a waiver of any subsequent breach of the same or any other term, covenant, or condition contained herein, whether of the same or a different character.
23. INTEGRA TED CONTRACT:
This Agreement and the corresponding Confidentiality Agreement being signed on same date, represent the full and complete understanding of every kind or nature whatsoever between the parties hereto, and all preliminary negotiations and agreements of whatsoever kind or nature are merged herein. No verbal agreement or implied covenant shall be held to vary the provisions hereof. Any modification of this Agreement will be effective only by written execution signed by both AMP and Contractor.
24. INSERTED PROVISIONS:
Each provision and clause required by law to be inserted into the Agreement shall be deemed to be enacted herein, and the Agreement shall be read and enforced as though each were included herein. If through mista ke or otherwise, any such provision is not inserted or is not correctly inserted, the Agreement shall be amended to ma ke such insertion on application by either party.
25. CAPTIONS:
The captions in this Agreement are for convenience only, are not a part of the Agreement and in no way affect, limit or amplify the terms or provisions of this Agreement.
8 PS 09-15-01 IN WITNESS WHEREOF, the parties have caused the Agreement to be executed on the day and year first above written.
ECOLOGY ACTION ALAMEDA MUNICIPAL POWER, a A California Corporation Department of e Alameda A Municipal
B� -
Rebecca Irwin Assistant General Manager
APPROVED AS TO FORNI: Chief Financial Officer y
�: � Alan M. Cohel)( Assistant Cirf\ttorney
9 09-15-01 PS EXHIB IT A
SCOPE OF SERVICES FOR A NON-RESIDENTIAL DIRECT -INSTALL LIGHTING, HVAC, AND REFRIGERATION RETROFIT PROGRAM
Create and implement a direct-install non-residential lighting, HVAC, refrigeration retrofit program that will provide cost-effective, reliable energy savings and rebates to customers, and that supports AMP greenhouse gas emissions reduction efforts. The program will be a "one-stop shop" for all non-residential customers that will provide a seamless customer experience from audit to installation to rebate.
The Program Administrator (PA) will provide all necessary services including but not limited to:
1. Kic k Off The Project Manager and pertinent staff for the Program Administrator (PA) shall attend a "kick-off' meeting at AMP to discuss program design and implementation details related to the contract, within ten (1 0) days of the contract start date.
Deliverables: • Notes from the project kic k-off meeting.
2. Program Design Program design will include development of program Standards and Procedures for all aspects of the program, a list of cost-effective energy efficiency measures, technical requirements similar to AMP's existing requirements, appropriate rebates, quality assurance and controls, program trac king and reporting, and final report. The PA will develop all templates and forms consistent with these standards and procedures.
Rebates must be performance-based, according to the actual first year kWh reduced for retrofits. The rebate for A 1 participants will be capped at 90% of the total project cost and for all others the cap is 80%. The PA will pay the rebate directly to the PA-Approved Contractor. If the estimated rebate is greater than $100,000, prior approval from AMP is required. AMP must approve all aspects of program design.
Deliverables: • Program Standards and Procedures including but not limited to: program forms such as a customer site access agreement, customer audit report, work order for PA-Approved Contractors, quality assurance and controls protocols, wee kly, monthly, and final reports that includes program goals, approach, results, conclusions, and recommendations.
• List of energy efficiency measures, technical requirements, warranty requirements, and corresponding rebates (draft and final).
3. Energy Savings AMP requires the actual equipment and hours of operation be used in calculating the energy savings. Additionally, photographs must be ta ken of the types of existing· equipment for each customer retrofit project. The photographs must be filed with the PS 09-15-01 EXH IBIT A customer application. If there are difficulties in determining details on the actual conditions, the default values for equipment and hours of operation should be taken from the "Savings Estimation Technical Reference Manual for the California Municipal Utilities Association (TRM)" May 5, 2014; or a comparable source approved by AMP. AMP requires the PA use the TRM as the default. If the PA wishes to use another source for estimating energy savings, the PA must do comparison runs to ensure the results of their sources and the TRM are reasonably similar and approved by AMP.
Deliverables: • Comparison runs of the PA estimated energy savings to the "Savings Estimation Technical Reference Manual for the California Municipal Utilities Association (TRM)" May 5, 2014 if the PA is not using the TRM.
4. PA-Approved Contractors and Retrofit Project Costs The PA will determine participation requirements for retrofit PA-Approved Contractors, recruit and train qualified PA-Approved Contractors, and maintain quality assurance of PA-Approved Contractors' work. The PA will establish fair market value for equipment and contractor labor rates. The PA will pay the rebate directly to the PA-Approved Contractor. The PA will also establish agreements to ensure PA-Approved Contractors meet program requirements. PA-Approved contractors must have appropriate licenses for the work they will perform, e.g., CA Contractors C-1 0, City of Alameda Business License, have the ability to offer contract performance and payment bonds as an option to customers, and obtain all appropriate permits. AMP must approve participation requirements for PA-Approved Contractors.
Deliverables: • Participation requirements for PA-Approved Contractors. • PA-Approved Contractor participation agreement. • Proof of appropriate licenses. • Proof of appropriate insurances. • List of participating PA-Approved Contractors.
5. Program Marketing AMP believes the most successful mar keting approach to non-residential customers is the PA approaching customers directly at their place of business. The bul k of the mar keting efforts of the PA will be this approach.
6. Energy Audits The PA will be responsible for obtaining a signed authorization from the customer allowing the auditor access to the customer facility prior to the wal k-through of the facility.
The PA will also ta ke responsibility for getting a signed Consent Release Form if the participant agrees to participate in a customer testimonial for use on AMP's website, Facebook, or other mar keting collateral. It is not necessary for the customer to agree to this; the Consent Release Form is optional.
The PA will collect information about the customer including site-specific information (e.g., AMP account number, service address, square footage, and ownership status),
2 PS 09-15-0 I EXH IB IT A contact information (e.g., name, title, phone number, and email address), language needs, and hours of operation.
The PA will be responsible for conducting the energy audit at the customer's facility that will include lighting, HVAC, and refrigeration. The audit will include digital photos of the customer's existing types of equipment.
The PA will analyze the energy efficiency opportunities at the facility and develop a comprehensive list of retrofits that leverages low-cost/no-cost measures against those with a longer payback.
The PA will generate a customer proposal/audit report that includes at a minimum: a. Description and quantities of existing equipment b. Recommended measures, including specifications and costs c. Expected gross project cost d. Net project costs e. AMP rebate f. Energy savings (kWh/year) g. Electric bill savings h. Simple payback
Deliverables: • Signed customer site access authorization form Signed Consent Release form • Customer information • Customer proposal/audit report • Photos of existing customer equipment as an electronic file
7. Customer Project Approval The PA must market the retrofit project to customers and manage the project for customers. When the customer approves the proposal, the PA will create a Work Order and send that to the qualifying PA-approved contractor (s) to start the retrofit process.
8. Project Installation • The PA will ensure that any PA-Approved Contractors work with customer to complete the project installation at a time and manner that is agreeable to the customer. The PA will provide oversight of retrofit PA-Approved Contractors and post installation inspections on all projects. The PA will arrange for the installation of specified equipment and provide construction management services. These services may include scheduling, ensuring compliance with recycling or disposal requirements, inspections, managing equipment warranty cycles, verifying required permits, and other construction management tas ks as necessary. PA will comply with all applicable local, State and Federal regulations regarding permits, building and safety codes, construction, and waste disposal. PA will ensure that all customer information is secure. There shall be no work stoppage for more than one week unless it has been prearranged and mutually agreed upon by AMP and PA.
When the retrofit has been completed by the PA-Approved Contractor, the PA will complete the post-install inspection, and the customer will sign off that the project has been completed and they are satisfied.
3 PS 09-15-0 I EXH IB IT A When a project has been installed and approved, the PA will provide the rebate directly to the PA-Approved Contractor. The PA-Approved Contractor will invoice the customer directly for the net cost of the retrofit (total cost minus the rebate).
Delivera b les: • Customer signed approval to proceed • Work Order to PA-Approved Contractor • Customer sign-off afterretrofit completed
9. Coordination with Other Agencies There are other programs from AMP and from other utilities and agencies that may complement the efforts of this program. The contractor will be responsible for referring customers to other programs, such as: a. Pacific Gas & Electric for gas measures b. East Bay Municipal Utility District for water conservation c. Alameda County Green Business Program, to be certified as a green business d. Energy Star's Portfolio Manager e. AMP's Alameda Green program to purchase Green-e Energy Certified clean energy f. Financing - California FIRST Property Assessed Clean Energy (PA CE) program sponsored by the California Statewide Communities Development Authority ("California Communities"). PA CE, of which the City of Alameda has joined, allows commercial property owners to use municipal bonds to finance energy efficiency, water efficiency and renewable energy upgrades, which the owners repay through a special assessment on their annual property tax bill. Interested commercial customers may apply through the www.californiafirst.org web portal.
I 0. Tracking and Reporting Weekly and monthly project and program trac king reporting must upload directly and reliably into MS Excel. The PA will develop a trac king and reporting database to collect, store, and report the following data: a. Project-Account name, business name, account #, rate schedule b. Project status c. Business type d. Description of existing equipment and quantity e. Proposed equipment and quantity, labor cost, equipment cost, tax f. Square feet of facility audited g. kWh reduced h. kW reduced 1. Rebate amount J. Wee kly, Monthly and program-to-program date expenses
Deliverables: Weekly and monthly trac king and reporting database as described above
II. Customer Survey Design and implement a customer participant survey to measure customer satisfaction with the program and identify opportunities for program improvements. The survey may be done using an online survey tool. 4 PS 09-15-01 EXH IB IT A
Delivera b les: • Customer survey form • Results and analysis of customer surveys
12. Final Report The PA will prepare a final report that describes the program goals, approach, results in terms of cost and benefits, energy and demand savings, Total Resource Cost Test and utility and customer levelized cost, conclusions, and recommendations of the work performed under this contract.
Deliverab les: • Outline of the final report (draft and final) • Final report (draft and final)
5 PS 09-15-01 FEE SCHEDULE EXHIBITB
Rebate rate per kWh: $0.23 Performance rate per kWh: $0.135 Two year budget not to exceed: $1,100,000
------·:�i� . "" MUTUAL NON-DISCLOSURE AGREEMENT
This Non-Disclosure Agreement (the "Agreement") is made this _{)__day of 2015 between ALAM EDA MUNICIPAL POWER, a department of the CITY-� OF ALA� A, a municipal corporation (the "AMP")and ECOLOGY ACTION located at 877 Cedar Street, Suite 240, Santa Cruz, CA 95060 ("Contractor") with reference to the following:
A. For purposes of this Agreement, the terms "Receiving Party" and "Disclosing Party" shall include the respective party's agents, employees and representatives.
B. In the course of their dealings with each other and in order to engage in discussions and exchanges of information relating to the business and products of both parties, including but not limited to discussions of related technical and business initiatives, to determine whether the parties wish to enter into a business relationship for their mutual benefit ("Business Purpose"), the undersigned parties may, from time to time, disclose certain technical, business and other information, some of which may be Confidential Information, as that term is later defined in this Agreement. The parties hereby desire to establish and set forth their mutual obligations with respect to the use and disclosure of such Confidential Information.
C. In consideration of the mutual disclosures, promises and obligations contemplated herein, the parties agree as follows:
1. "Confidential Information" means any company proprietary information, technical data or trade secrets or know-how, including but not limited to business models, product plans, products, customer technical requirements, software,programming techniques, services, suppliers, supplier lists, customers, customer lists, customer technical requirements, markets, developments, inventions, processes, contracts, business structures, technology, designs, drawings, engineering, apparatus, techniques, hardware configuration information, mar keting, forecasts, business strategy, or finances disclosed and identified by the parties as being Confidential Information, in writing, orally or by drawings or inspection of samples, parts or equipment.
2. Notwithstanding the foregoing, "Confidential Information" shall not include information or disclosure that the Receiving Party can demonstrate:
A. Is now, or hereafter becomes, through no act or failure to act on the part of the Receiving Party, generally known or available to the public;
B. Was known by the Receiving Party before receiving such Confidential Information from the Disclosing Party;
C. Is received from a third party without restriction on disclosure and without breach of a nondisclosure obligation, except in the case of customer contracts;
D. Is independently developed by the Receiving Party without use of or reference to the Confidential Information by persons who had no access to the Confidential Information;
E. Was authorized for disclosure by the Disclosing Party.
PS 09-15-0 I NDA 3. Each party shall limit (to the extent practicable) the disclosure of Confidential Information to the other party. The Confidential Information that is disclosed shall be used solely for the Business Purpose and shall not be used for any other purpose. All Confidential Infonnation supplied by a party, unless otherwise agreed to in writing, shall remain the property of the Disclosing Party.
4. Each party agrees:
A. To hold the other party's Confidential Infonnation in strict confidencesubject to the tennsof this Agreement;
B. Not to disclose such Confidential Information to any third party, except as specifically authorized herein or as specifically authorizedby the other party in writing;
C. Not to disclose the nature of discussions or the proposed business relationship between the parties or the existence of this Agreement or of any of the terms and conditions contained herein without the prior written consent of the other party;
D. To use all reasonable precautions to prevent the unauthorized disclosure of the other party's Confidential Infonnation;
E. Not to use any Confidential Information for any purpose other than to carry out the Business Purpose specificto the Disclosing Party.
5. Each party may only disclose the other party's Confidential Information to its responsible employees and consultants who have a "need-to-know" such Confidential Infonnation in order to carry out the Business Purpose, only if such persons are advised of the confidential nature of the disclosure and are bound by written agreement or by legally enforceable code of professional responsibility to protect against the disclosure of the Confidential Information.
6. Each party may disclose the other party's Confidential Infonnation if and to the extent that such disclosure is required by applicable law, provided that the Receiving party uses reasonable efforts to limit the disclosure by a request for confidential treatment and provides the Disclosing Party a reasonable opportunity to review the disclosure before it is made and to interpose its own objection to the disclosure.
7. ALL CONFIDENTIAL INFORMATION IS PROVIDED "AS IS". EACH PARTY MAKES NO WARRANTIES, EXPRESS, IMPLIED OR OTHERWISE, REGARDING ITS ACCURACY, COMPLETENESS OR PERFORMANCE.
8. Upon the request of the Disclosing Party, the Receiving Party will promptly return to the Disclosing Party all copies of the Confidential Information, will destroy all notes, abstracts and other documents that contain Confidential Information, and will provide to the Disclosing Party a written certification of an officer of the Receiving Party that it has done so.
9. Nothing in this Agreement shall be construed as granting any property or other rights (express or implied) to the Receiving Party, by license or otherwise, to any of the Disclosing Party's Confidential Information, except as specifically stated herein.
2 PS 09-15-0 I NDA 10. Each party acknowledges that the covenants and agreements made in this Agreement are reasonable and are required for the reasonable protection of the parties and that the unauthorized use or disclosure of the other party's Confidential Information would cause irreparable harm to the other party. Accordingly, each party agrees that the other party will have the right to obtain an immediate injunction against any breach or threatened breach of this Agreement and to enjoin the other party from engaging in any activity in violation hereof, to enforce the specific performance obligations hereunder; and that no claim by the party against the other party or its successors or assigns will constitute a defense or bar to the specific enforcement of such obligations, as well as the right to pursue any and all other rights and remedies available at law or in equity for such a breach. The prevailing party in any such action shall be entitled to recover, in addition to the relief granted, the costs and expenses of enforcement, including reasonable attorney's fees.
11. In addition to the protections provided to the parties herein, the parties agree that any Confidential Information provided by Contractor is and shall remain the sole intellectual property of Contractor and will not be modified or used outside of its intended Business Purpose.
12. In addition to the protections provided to the parties herein, the parties agree that any Confidential Information provided by AMP is and shall remain the sole intellectual property of AMP and will not be modified or used outside of its intended Business Purpose.
13. This Agreement shall apply to all Confidential Information disclosed by one party to the other party on or after the Effective Date. The mutual obligations contained in this Agreement will remain in effect for two (2) years after the date of the last disclosure of Confidential Information, at which time this Agreement will terminate. As to specific Confidential Information which loses its confidential status, this Agreement shall terminate as to that Confidential Information at that time.
14. No failure or delay by a party in exercising any right, power or privilege hereunder shall operate as a waiver thereof nor shall any single or partial exercise thereof preclude any other or further exercise of any right, power or privilege.
15. This Agreement constitutes the complete and exclusive understanding reached between the parties with reference to the subject matter herein and supersedes all prior communications and agreements, whether oral or written. The terms and conditions set forth herein shall be modified, replaced, assigned or rescinded only in writing and signed by a duly authorized representative of each party. If one or more of the provisions in this Agreement are deemed void by law, the remaining provisions will continue in full force and effect.
16. This Agreement will be construed and enforced according to the laws of the State of California, U.S.A. without application of the principles of conflict of laws. This Agreement is not, however, intended to limit any rights that the parties may have under trade secret, copyright or patent laws which may apply to the subject matter of this Agreement both during and after the term of this Agreement.
3 PS 09-15-01 NDA IN WITNESS WHEREOF, the parties have caused the Agreement to be executed on the day and year first above written.
ECOLOGY ACTION ALAMEDA MUNICIPAL POWER, a A California Corporation Alameda
�� y B Rebecca Irwin Assistant General Manager �---- - B y__ �� ______���- C�h�a�rt�€S� -r�- /7�rL_ APPROVED AS TO FORM: Chief Financial Officer City Attorney �
Assistant City Attorney
4 09-15-01 PS NDA AGENDA ITEM NO.: 4.E MEETING DATE: 03/15/2021 EXHIBIT B
AGENDA ITEM NO.: 4.E MEETING DATE: 03/15/2021 EXHIBIT C
AGENDA ITEM NO.: 4.E MEETING DATE: 03/15/2021 EXHIBIT D
AGENDA ITEM NO: 4.F.1 MEETING DATE: 03/15/2021 ADMINISTRATIVE REPORT NO.: 2021-50 ACTION: BY MOTION
To: Honorable Public Utilities Board Submitted by: /S/ Robert Orbeta AGM - Administration
From: Sophie Saad Financial & Utility Billing Manager Approved by: /S/ Nicolas Procos General Manager
Subject: Accept the Independent Audit of Alameda Municipal Power’s Financial Position for the Fiscal Years Ended June 30, 2020 and June 30, 2019, and Its Associated Reports ______
RECOMMENDATION
By motion; accept the independent audit of Alameda Municipal Power’s financial position for the fiscal years ended June 30, 2020 and June 30, 2019, and its associated reports.
BACKGROUND
The City of Alameda’s Charter (Article XII Sec 12-4[B]) and state statutes require an annual audit of Alameda Municipal Power (AMP) by independent Certified Public Accountants (CPA). AMP contracted with Vavrinek, Trine, Day & Co (VTD) as its CPA firm to perform the audit. VTD was acquired by Eide Bailly in July 22, 2019 adding and expanding to the firm’s partners and staff.
DISCUSSION
Each year, the audit process produces a variety of written documentation on AMP’s financial position as of June 30. The documentation for fiscal year (FY) 2020 provides detailed financial information by which the Board, City Council, the public, market analysts, investors, and other interested parties, may assess the current status of AMP’s business affairs through June 30, 2020, and it also provides a performance comparison to previous years.
Included in this year’s documentation is:
1. A letter from the independent auditor describing Internal Control Over Financial Reporting and on Compliance and other Matters based on an audit of Financial Statements performed in accordance with Government Auditing Standards (GAS) (Exhibit A);
2. A letter from the independent auditor describing observations related to compliance with AMP’s investment policy (Exhibit B); AGENDA ITEM NO: 4.F.2 MEETING DATE: 03/15/21 ADMINISTRATIVE REPORT NO.: 2021-50
3. A letter from the independent auditor describing Significant Audit Findings encountered during the review and a summary of additional reviews done in support of the audit (Exhibit C); and
4. AMP’s Comprehensive Annual Financial Report (CAFR) for the fiscal years ended June 30, 2020 and June 30, 2019 (Exhibit D).
AMP’s management is responsible for both the accuracy of the data contained in the CAFR and the completeness & fairness of the presentation including all disclosures. To the best of our knowledge and belief, the data presented is accurate in all material respects, and is reported in a manner that fairly sets forth the financial position and operational results of AMP. It should be noted that the independent auditor has expressed in their Independent Auditors’ Report, which is included in the financial section of the CAFR, that “In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of each major fund of AMP as of June 30, 2020, and the respective changes in financial position, and cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America.”
The letters from the independent auditor describing observations related to compliance with the City of Alameda’s Charter (Exhibit A) and AMP’s Investment Policy (Exhibit B) affirm that the Auditor conducted their audit in accordance with generally accepted auditing standards, performed certain tests to obtain reasonable assurance that the financial statements are free of material misstatements, and that nothing came to the attention of the auditor that caused them to believe that AMP failed to comply with applicable guidelines related to the Charter or the Investment Policy.
The letter from the independent auditor describing Significant Audit Findings (Exhibit C) affirm that the Auditor conducted their audit in accordance with generally accepted auditing standards and that AMP management was responsible for the selection and use of appropriate accounting policies. The auditor noted:
1. There were no transactions entered into by AMP during the year for which there was a lack of authoritative guidance.
2. All significant transactions have been recognized in the financial statements in the proper period.
AGENDA ITEM NO: 4.F.3 MEETING DATE: 03/15/21 ADMINISTRATIVE REPORT NO.: 2021-50
3. Management’s estimate of the green-house gas related sales accrued but uncollected, fair value of investments, estimated liability for claims incurred but not reported, and the estimates related to the net pension and OPEB liability, deferred inflows of resources and deferred outflows of resources and related disclosures were reasonable.
4. There were no difficulties or disagreements encountered.
The CAFR for FY 2020 (Exhibit D), with its comparative amounts to previous year, was prepared to meet the needs of a broad spectrum of financial statement readers.
The CAFR is divided into the following sections:
• Introductory Section: This section introduces the reader to AMP and includes a transmittal letter from the General Manager highlighting AMP’s history, its recent accomplishments, and some of the economic conditions within which AMP operates.
• Financial Section: This section introduces the reader to specific financial data and includes the independent auditors’ report, management’s discussion and analysis letter, financial statements, and notes to the financial data.
• Statistical Section: This section introduces the reader to the history of AMP through a number of tables and graphs revealing long-term results of AMP’s operations, the City’s demographics and miscellaneous data that complements the financial data. Although this section contains substantial financial data, the tables and graphs differ from financial statements in that they present some non-accounting data, cover more than the current year, and are designed to reflect social and economic data, financial trends, and the fiscal capabilities of AMP.
• Bond Disclosure Section: This section introduces the reader to consolidated information which was previously transmitted separately as part of required bond disclosures. The information presented is for AMP’s five (5) most recent fiscal years and includes those years ended June 30, 2020, 2019, 2018, 2017, and 2016.
After acceptance by the Board, the CAFR for FY 2020 will be on file with the City Clerk, and can also be reviewed at the Alameda Free Library and its branches. Additionally, the CAFR will be added to AMP’s website and, in accordance with policy and lending institution covenant, will be distributed to several parties outside of AMP.
FINANCIAL IMPACT
Not Applicable
AGENDA ITEM NO: 4.F.4 MEETING DATE: 03/15/21 ADMINISTRATIVE REPORT NO.: 2021-50
EXHIBITS
A. Letter from the independent auditor describing Internal Control Over Financial Reporting and on Compliance and other Matters based on an audit of Financial Statements performed in accordance with Government Auditing Standards (GAS) B. Letter from the independent auditor describing observations related to compliance with AMP’s investment policy C. Letter from the independent auditor describing Significant Audit Findings D. AMP’s Comprehensive Annual Financial Report (CAFR) for the fiscal years ended June 30, 2020 and June 30, 2019
AGENDA ITEM NO.: 4.F MEETING DATE: 03/15/2021 EXHIBIT A
Independent Auditor’s Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards
Public Utilities Board Alameda Municipal Power Alameda, California
We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements Alameda Municipal Power (AMP), an enterprise fund and department of the City of Alameda, California (City), as of and for the year ended June 30, 2020, and the related notes to the financial statements, which collectively comprise the AMP’s basic financial statements and have issued our report thereon dated February 25, 2021. Our report included an emphasis of matter stating that the financial statements present only AMP and do not purport to, and do not, present fairly the financial position of the City.
Internal Control over Financial Reporting In planning and performing our audit of the financial statements, we considered AMP’s internal control over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinion on the financial statements, but rn ot fo the purpose of expressing an opinion on the effectiveness of AMP’s internal control. Accordingly, we do not express an opinion on the effectiveness of AMP’s internal control.
A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control such that there is a reasonable possibility that a material misstatement of the entity’s financial statements will not be prevented, or detected and corrected, on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance.
Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies, and therefore, material weaknesses or significant deficiencies may exist that have not been identified. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. We did identify certain deficiency in internal control, described in the schedule of findings and responses as item 2020-001 that we consider to be a significant deficiency.
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2151 River Plaza Dr., Ste. 308 | Sacramento, CA 95833-4133 | T 916.570.1880 | F 916.570.1875 | EOE Compliance and Other Matters As part of obtaining reasonable assurance about whether AMP’s financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the financial statements. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards.
AMP’s Response to Finding AMP’s response to the finding identified in our audit is described in the schedule of findings and responses. AMP’s response was not subjected to the auditing procedures applied in the audit of the financial statements and, accordingly, we express no opinion on it.
Purpose of this Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the entity’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose.
Sacramento, California February 25, 2021
2 Alameda Municipal Power Schedule of Findings and Recommendations June 30, 2020
Finding 2020-001
INVENTORY OBSERVATION
Criteria: Internal controls should be established to ensure that inventory on hand is accurately counted and that reconciliation is performed over AMP’s Inventory Management System and Cayenta, AMP’s general ledger system.
Condition Found: Significant Deficiency – As a result of our audit procedures, we identified discrepancies between our test count and AMP’s inventory records generated from Cayenta. We also noted instances in which the Cayenta report did not match the Inventory Management System.
Context: During our physical inventory observation at both warehouses, we were provided an inventory list generated from Cayenta to perform a test count. Based on our test count at one warehouse, we identified an instance in which a box of four smart meters were not accounted for as management reported a quantity of 116 whereas we counted 120.
During our physical inventory observation at the other warehouse, we identified an instance in which 167 bolts were reported by Cayenta whereas we counted 166; and another instance in which 9 repair couplers were reported by Cayenta whereas we counted 12. However, for both instances, our test count results agreed to AMP’s Inventory Management System. As such, the discrepancies were due to differences between the Inventory Management System and Cayenta.
Cause: AMP did not have policies and procedures in place to ensure all inventory is accounted for and to reconcile records between the Inventory Management System and Cayenta.
Effect: There is an increased risk of financial statements misstatements due to error or fraud if physical inventory is not counted accurately and that the Inventory Management System does not agree to Cayenta.
Recommendation: We recommend that management strengthen its policies and procedures over physical inventory to ensure all inventory is accounted for. We also recommend that management implement policies and procedures to perform reconciliation over the Inventory Management System and Cayenta.
3 Views of Responsible Officials and Planned Corrective Actions: Internal controls for inventory will be improved by designating a space for parts that are being returned to vendors or those that are waiting testing before being accepted into inventory.
AMP personnel will be working with the system provider to clear “phantom” locations that do not get picked up on the reports resulting in mismatched information.
Management would like to provide the below explanations for the items that were observed as being deficient:
The reason why the count of the meters did not match the Inventory Management System is because a box of four meters identifiable by the Storeroom staff were located near the meters in inventory awaiting a shipping label from the manufacturer to return. Storeroom will use designated areas for materials to be returned as well as other needs to separate materials not in inventory (e.g., electrical equipment waiting to be tested before receiving into inventory). These materials will also be labeled.
With respect to the couplers, the total count compared to the total amount in the Cayenta Stock Status Report and Cayenta Inventory Inquiry functionality all matched. The Cayenta Stock Status Report has a part of the inventory in a separate location and the total amount was not used in the audit resulting in a false discrepancy. Storeroom is working with the software vendor to fix the issue of the phantom location. While we are trying to fix this software issue, the work around is to use the total amount, especially since this part is all stored in one location.
The count of the bolts was off by one compared to the Cayenta Stock Status Report and Cayenta Inventory Inquiry functionality. The inventory stock status report was dated 6/27/20 and the count was performed after this date. The quantity was adjusted for the count on 6/28/20 to match the physical count. The stock status report that was provided to the auditors was prior to the adjustment for the physical count and therefore did not include the adjustment to match the total physical count.
4 AGENDA ITEM NO.: 4F MEETING DATE: 03/15/2021 EXHIBIT B
Independent Auditor’s Report on Compliance with Investment Policy
Public Utilities Board Alameda Municipal Power Alameda, California
We have audited, in accordance with auditing standards generally accepted in the United States of America, the financial statements of Alameda Municipal Power (AMP), an enterprise fund and department of the City of Alameda, California (City), as of and for the year ended June 30, 2020, and the related notes to the financial statements, and have issued our report thereon dated February 25, 2021. Our report included an emphasis of matter regarding that the financial statements present only AMP’s enterprise fund and do not purport to, and do not, present fairly the financial position of the City.
In connection with our audit, nothing came to our attention that caused us to believe that AMP failed to comply with the provisions of AMP’s Investment Policy for the year ended June 30, 2020 approved by the Public Utilities Board on June 17, 2019, insofar as they relate to accounting matters. Accordingly, had we performed additional procedures, other matters may have come to our attention regarding AMP’s noncompliance with the above referenced terms, covenants, provisions, or conditions of the Investment Policy, insofar as they relate to accounting matters.
This report is intended solely for the information and use of the Public Utilities Board, and management, and is not intended to be and should not be used by anyone other than these specified parties.
Sacramento, California February 25, 2021
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2151 River Plaza Dr., Ste. 308 | Sacramento, CA 95833-4133 | T 916.570.1880 | F 916.570.1875 | EOE AGENDA ITEM NO.: 4.F MEETING DATE: 03/15/2021 EXHIBIT C
February 25, 2021
Public Utilities Board Alameda Municipal Power Alameda, California
We have audited the financial statements of Alameda Municipal Power (AMP), an enterprise fund and department of the City of Alameda, California, for the years ended June 30, 2020 and 2019. Professional standards require that we advise you of the following matters relating to our audit.
Our Responsibility in Relation to the Financial Statement Audit under Generally Accepted Auditing Standards and Government Auditing Standards
As communicated in our letter dated April 13, 2020, our responsibility, as described by professional standards, is to form and express an opinion about whether the financial statements that have been prepared by management with your oversight are presented fairly, in all material respects, in accordance with accounting principles generally accepted in the United States of America. Our audit of the financial statements does not relieve you or management of your respective responsibilities.
Our responsibility, as prescribed by professional standards, is to plan and perform our audit to obtain reasonable, rather than absolute, assurance about whether the financial statements are free of material misstatement. An audit of financial statements includes consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control over financial reporting. Accordingly, as part of our audit, we considered the internal control of AMP solely for the purpose of determining our audit procedures and not to provide any assurance concerning such internal control.
We are also responsible for communicating significant matters related to the audit that are, in our professional judgment, relevant to your responsibilities in overseeing the financial reporting process. However, we are not required to design procedures for the purpose of identifying other matters to communicate to you.
We have provided our comments regarding a significant control deficiency during our audit in our Independent Auditor’s Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards dated February 25, 2021.
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2151 River Plaza Dr., Ste. 308 | Sacramento, CA 95833-4133 | T 916.570.1880 | F 916.570.1875 | EOE Planned Scope and Timing of the Audit
We conducted our audit consistent with the planned scope and timing we previously communicated to you.
Compliance with All Ethics Requirements Regarding Independence
The engagement team, others in our firm, as appropriate, our firm, and other firms utilized in the engagement, if applicable, have complied with all relevant ethical requirements regarding independence.
Qualitative Aspects of the Entity’s Significant Accounting Practices
Significant Accounting Policies
Management has the responsibility to select and use appropriate accounting policies. A summary of the significant accounting policies adopted by AMP is included in Note 1 to the financial statements. There have been no initial selection of accounting policies and no changes in significant accounting policies or their application during 2020. No matters have come to our attention that would require us, under professional standards, to inform you about (1) the methods used to account for significant unusual transactions and (2) the effect of significant accounting policies in controversial or emerging areas for which there is a lack of authoritative guidance or consensus.
Significant Accounting Estimates
Accounting estimates are an integral part of the financial statements prepared by management and are based on management’s current judgments. Those judgments are normally based on knowledge and experience about past and current events and assumptions about future events. Certain accounting estimates are particularly sensitive because of their significance to the financial statements and because of the possibility that future events affecting them may differ markedly from management’s current judgments.
The most sensitive accounting estimates affecting the financial statements are were:
• Green‐house gas credit sales accrual uncollected at June 30, 2020; • Unbilled utilities; • Liability for claims incurred but not reported; • Net pension liability, deferred inflows of resources and deferred outflows of resources and related disclosures which are based on actuarial valuations and a proportionate share of the City of Alameda’s Miscellaneous Plan net pension liability, and; • Net OPEB liability, deferred inflows of resources and deferred outflows of resources and related disclosures which are based on actuarial valuations and a proportionate share of the City of Alameda’s net OPEB liability.
We evaluated the key factors and assumptions used to develop the estimates and determined that they are reasonable in relation to the basic financial statements taken as a whole.
2 Financial Statement Disclosures
Certain financial statement disclosures involve significant judgment and are particularly sensitive because of their significance to financial statement users. The most sensitive disclosures affecting AMP’s financial statements relate to:
Note 6 to the financial statements discloses key elements of AMP's proportionate share of the City of Alameda’s pension plan, administered by the California Public Employees' Retirement System (CalPERS). As disclosed in the footnote, a 1% increase or decrease in the discount rate can have a material effect on AMP's proportionate share of the net pension liability.
Note 7 to the financial statements discloses key elements of AMP's proportionate share of the City of Alameda's OPEB plan. As disclosed in the footnote, a 1% increase or decrease in either the discount rate or the healthcare cost trend rate can have a material effect on AMP's proportionate share of the net OPEB liability.
Significant Difficulties Encountered during the Audit
We encountered no significant difficulties in dealing with management relating to the performance of the audit.
Uncorrected and Corrected Misstatements
For purposes of this communication, professional standards require us to accumulate all known and likely misstatements identified during the audit, other than those that we believe are trivial, and communicate them to the appropriate level of management. Further, professional standards require us to also communicate the effect of uncorrected misstatements related to prior periods on the relevant classes of transactions, account balances or disclosures, and the financial statements as a whole.
The following misstatement was identified as a result of our audit procedures was brought to the attention of, and corrected by, management:
Number Opinion Unit Account/Description Debit Credit
1 AMP Accounts Receivable Miscellaneous $ 293,690 Construction in Progress $ 293,690
To correct construction in progress and accounts receivables balances at year-end.
There were no uncorrected misstatements identified as a result of our audit procedures.
Disagreements with Management
For purposes of this letter, professional standards define a disagreement with management as a matter, whether or not resolved to our satisfaction, concerning a financial accounting, reporting, or auditing matter, which could be significant to AMP’s financial statements or the auditor’s report. No such disagreements arose during the course of the audit.
3 Representations Requested from Management
We have requested certain written representations from management which are included in the management representation letter dated February 25, 2021.
Management’s Consultations with Other Accountants
In some cases, management may decide to consult with other accountants about auditing and accounting matters. Management informed us that, and to our knowledge, there were no consultations with other accountants regarding auditing and accounting matters.
Other Significant Matters, Findings, or Issues
In the normal course of our professional association with AMP, we generally discuss a variety of matters, including the application of accounting principles and auditing standards, operating conditions affecting the entity, and operating plans and strategies that may affect the risks of material misstatement. None of the matters discussed resulted in a condition to our retention as AMP’s auditors.
Other Information in Documents Containing Audited Financial Statements
Pursuant to professional standards, our responsibility as auditors for other information in documents containing AMP’s audited financial statements does not extend beyond the financial information identified in the audit report, and we are not required to perform any procedures to corroborate such other information.
Our responsibility also includes communicating to you any information which we believe is a material misstatement of fact. Nothing came to our attention that caused us to believe that such information, or its manner of presentation, is materially inconsistent with the information, or manner of its presentation, appearing in the financial statements.
Modification of the Auditor’s Report
We expect to make the following modification to our auditor’s report.
Individual Fund Financial Statements As discussed in Note 1 to the financial statements, the financial statements present only the AMP electric enterprise fund and do not purport to, and do not, present fairly the financial position of the City of Alameda, California, as of June 30, 2020 and 2019, and the changes in its financial position, or where applicable, its cash flows for the year then ended in conformity with accounting principles generally accepted in the United States of America. Our opinion is not modified with respect to this matter.
This report is intended solely for the information and use of the Board and management of AMP and is not intended to be, and should not be, used by anyone other than these specified parties.
Sacramento, California
4 AGENDA ITEM NO.: 4.F MEETING DATE: 03/15/2021 EXHIBIT D
CCOMPREHENSIVE AANNUAL FFINANCIAL RREPORT For the years ended June 30, 2019 and June 30, 2020
An Enterprise Fund and Department of the City of Alameda Alameda, California AGENDA ITEM NO.: 4.F MEETING DATE: 03/15/2021 EXHIBIT D PUBLIC UTILITIES BOARD (AS OF JUNE 30, 2020)
President Ann McCormick
Vice President Jerry Serventi
Commissioner Jeff Gould
Commissioner Laura Giuntini
City Manager Eric Levitt
ALAMEDA MUNICIPAL POWER
General Manager Nicolas Procos
Assistant General Manager, Engineering & Operations Andre Basler
Assistant General Manager, Customer Resources Rebecca Irwin
Assistant General Manager, Administration Robert Orbeta
Assistant General Manager, Energy Resource Planning Vidhi Chawla
2000 Grand Street Alameda, CA 94501 510.748.3900 www.alamedamp.com AGENDA ITEM NO.: 4.F MEETING DATE: 03/15/2021 EXHIBIT D
Comprehensive Annual Financial Statements June 30, 2020 and 2019 Alameda Municipal Power An Enterprise Fund and Department of the City of Alameda, California AGENDA ITEM NO.: 4.F MEETING DATE: 03/15/2021 EXHIBIT D
Alameda Municipal Power An Enterprise Fund and Department of the City of Alameda, California Table of Contents Years Ended June 30, 2020 and 2019
INTRODUCTORY SECTION Table of Contents ...... i Letter of Transmittal ...... iii Principal Officers ...... xv Organizational Chart ...... xvi GFOA Award ...... xvii Location Map ...... xviii FINANCIAL SECTION Independent Auditor’s Report ...... 1 Management’s Discussion and Analysis ...... 4 Basic Financial Statements Statements of Net Position ...... 17 Statements of Revenues, Expenses and Changes in Fund Net Position ...... 19 Statements of Cash Flows ...... 20 Notes to Financial Statements ...... 22 Required Supplementary Information Schedule of AMP's Proportionate Share of the City's Miscellaneous Plan Net Pension Liability ...... 62 Schedule of AMP’s Pension Contributions ...... 63 Schedule of AMP’s Proportionate Share of the City’s OPEB Liability and Related Ratios ...... 64 Schedule of AMP's OPEB Contributions ...... 65 STATISTICAL SECTION Statistical Section Overview ...... 67 Net Position by Component ...... 68 Changes in Net Position of Consolidated Operations ...... 69 Changes in Net Position of Electric and Telecommunication Operations ...... 70 Electric Operating Revenues by Source ...... 71 Customer Accounts ...... 72 Pricing Changes ...... 73 Ratio of Outstanding Debt by Type ...... 74 Revenue Bonds / Certificates of Participation Coverage – Electric Operations ...... 75 Certificates of Participation Coverage - Telecommunications...... 76 Demographic and Economic Statistics ...... 77 Top Ten Customers and City’s Principal Employers ...... 78 Operating Expenses by Function Per FERC Codes ...... 79 Capital Asset Statistics by Function / Program ...... 81 Operation Indicators ...... 82 Days Cash on Hand...... 84 AGENDA ITEM NO.: 4.F MEETING DATE: 03/15/2021 EXHIBIT D
BOND DISCLOSURE SECTION Report Overview ...... 86 Power Supply Resources ...... 89 Electric Rate Changes ...... 90 Electric Customers, Sales, Revenues and Demand ...... 91 Condensed Operating Results and Selected Balance Sheet Information ...... 92 AGENDA ITEM NO.: 4.F MEETING DATE: 03/15/2021 EXHIBIT D
February 25, 2021
To the Public Utilities Board and Our Customers:
We are pleased to transmit the Comprehensive Annual Financial Report of Alameda Municipal Power (AMP), an enterprise fund and department of the City of Alameda, California for the fiscal years ended June 30, 2020 and 2019. AMP encourages readers to review all sections of this report and especially request that they refer to Management’s Discussion and Analysis located in the Financial Section of this report.
Responsibility for both the accuracy of the data, and the completeness and fairness of the presentation, including all disclosures, rests with AMP’s management. AMP believes that the data presented here is accurate in all material respects, that the data is presented in a manner designed to set forth fairly the financial position of the organization and that all disclosures necessary to gain an understanding of the financial activity are included in this report.
Profile
The City of Alameda - Department of Public Utilities - Bureau of Electricity, now doing business as Alameda Municipal Power, is the oldest municipal electric utility in California and is amongst the oldest in the nation, either public or private. The municipal utility has safely provided reliable, cost-effective, and environmentally responsible, electric-energy services since its founding in 1887. As a reminder to the reader, AMP sold its telecommunications business line (telecom) to Comcast of Alameda, Inc. effective November 21, 2008, changed its name from Alameda Power & Telecom to Alameda Municipal Power on January 26, 2009, and ceased to provide telecom services on March 21, 2009.
AMP is governed by a Public Utilities Board (Board). Pursuant to the Alameda City Charter, the Board has the power to control and manage the electric system, including the power to fix rates for the services provided by AMP. The Board establishes goals and policies, approves major purchases, and creates the framework for local control of AMP, one of Alameda’s largest businesses. The Board is comprised of four commissioners (appointed by the Mayor with concurrence from the City Council) and the City Manager (as an ex-officio member). During fiscal year (FY) 2020, the members of the Board included President Ann McCormick, Vice President Jerry Serventi, Commissioner Laura Giuntini, Commissioner Jeff Gould, Commissioner and City Manager Eric J. Levitt. For FY 2021, the Board members are Ann McCormick, President, Jerry Serventi, Vice President, Commissioners Laura Giuntini, Jeff Gould, and City Manager Eric J. Levitt. The appointments became effective July 2020.
AGENDA ITEM NO.: 4.F MEETING DATE: 03/15/2021 EXHIBIT D
The City of Alameda is an island community of 22.8 square miles located across the bay from San Francisco and to the southwest of the City of Oakland. Alameda Municipal Power (hereinafter, “AMP”) serves the entire area of the City of Alameda and has about 86 pole miles of overhead distribution lines and 186 circuit miles of underground distribution lines, 6.8 pole miles of overhead transmission lines, 1.9 underground circuit miles. During FY 2020, AMP served an average of 36,067 customers, comprised of an average of 31,822 residential customers, an average of 3,852 commercial customers and an average of 393 public authority and other customers, with a peak demand of approximately 62.0 MW.
AMP does not independently own any generation assets at this time; but rather, it procures power through long and short-term agreements. To facilitate the acquisition of power, AMP joined the Northern California Power Agency (NCPA) in 1968. NCPA is a joint-powers agency composed of AMP and 14 other northern California public entities. NCPA provides electric scheduling, dispatch and transmission for the provision of AMP’s electric-energy services. AMP participates in the NCPA power pool and makes short-term market purchases and sales as necessary, or economical, to meet its native load requirements and dispose of surplus. Generally, AMP has entered into power purchase agreements solely or primarily for use within its own system. AMP continues its program to research, solicit and acquire electric generation sources that are economical, provide stable costs over the long-term, and are environmentally responsible.
The actual energy purchased is illustrated below:
76.8 Other Purchases (Sales) 128.6
36.5 Silicon Valley Power 36.3
45.1 Calaveras Hydro 85.1
57.8 Western Hydro 43.4
59.4 Geothermal -
52.6 Landfill Projects 29.9
18.6 High Winds 20.7
3.3 Combustion Turbines 5.3
2.5 Graeagle Hydro 2.0
0.0 20.0 40.0 60.0 80.0 100.0 120.0 140.0
Purchased Power Sources FY2020 FY2019 Actual Energy (GWh) - FY2020 and FY2019
AGENDA ITEM NO.: 4.F MEETING DATE: 03/15/2021 EXHIBIT D
AMP participates in most of NCPA’s generation projects, but it does not participate in the Lodi Energy Center. Approximately 69.4% of AMP’s resources in FY2020 were sourced through NCPA including 12.8% from the Calaveras hydroelectric facilities, 16.4% from the Western Area Power Administration’s (WAPA) hydroelectric facilities, 0.7% from the Graeagle hydroelectric facilities, 16.9% from geothermal and 0.9% from the Combustion Turbine (CT) projects. NCPA market purchases for AMP accounted for another 21.8% of purchased power.
AMP sold its share of eligible renewable energy generated by the NCPA Geothermal Project and one of its landfill power purchase agreements through December 31, 2019. FY2020 reflects one- half year of Geothermal power purchases while FY2019 reflects zero.
AMP procured approximately 30.5% of its power supply resources independent of NCPA and has obtained independent contracts for several landfill gas facilities and for a portion of the high winds project. NCPA provides electric scheduling, dispatch and transmission for these electric-energy services.
At its January 2012 meeting, the Board approved a Renewable Portfolio Power Sales Policy that directed AMP to sell all eligible renewable power through 2019 not required to comply with the revised Renewable Portfolio Standard. NCPA makes market purchases to replace the short-term sales and meet AMP’s load requirements.
The Board directed that the resulting revenues from the short-term sales of the renewable power be retained and used to support AMP directed initiatives to reduce Green House Gas (GHG) emissions associated with electricity usage and service. Additionally, the California Cap-and- Trade (C&T) program continues to auction directly allocated allowances from the California Air Resources Board (CARB). The resulting revenues from the C&T sales will be used for the benefit of ratepayers consistent with the goals of Assembly Bill 32. AMP has established Board designated reserves for these special sales revenues.
Each year, the energy output from the generating facilities is optimized based upon seasonal, economic and maintenance considerations. The chart below indicates the electric system’s maximum average daily load occurs about 7:00 pm during the winter and the minimum average daily load occurs about 4:00 am during the summer. This data is used by AMP to review system capacity needs and trends for time-of-use rate planning. AGENDA ITEM NO.: 4.F MEETING DATE: 03/15/2021 EXHIBIT D
TYPICAL DAILY LOADS FY 2020 60
55
50
45
40
35 Megawatts 30
25
20 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 Hour of the Day Summer Season Winter Season
AMP’s employees keep the system operational 24 hours a day, 7 days a week. The utility’s professionals are represented by Alameda Municipal Power Unrepresented Employees (“AMPU”), the Electric Utility Professionals of Alameda (“EUPA”). Non-management personnel are represented by either the International Brotherhood of Electrical Workers (“IBEW”) or the Alameda City Employees Association (“ACEA”). The current Memoranda of Understanding expires June 2022. Employee retirement benefits are provided by AMP through the City of Alameda’s participation in the California Public Employees Retirement System (“CalPERS”). AGENDA ITEM NO.: 4.F MEETING DATE: 03/15/2021 EXHIBIT D
100 Electric Staff Position - Budget/Actual 98 96 94 92 Budget 90 Actual 88 86 84 82 80 2015 2016 2017 2018 2019 2020
AMP refinanced $31.7 million of its electric debt during August 2010 into fixed rate bonds. The Board continues to establish financial guidelines, set specific reserve targets and affirm rate principles.
In January 2019, the Board accepted the five-year strategic plan that will enable AMP to meet its obligations as Alameda’s municipal electric provider for 2020 through 2025. Critical elements that will determine AMP’s future direction include global issues, issues within Alameda, critical stakeholders, priorities, mission, vision, values, and key performance indicators (KPI).
The strategic plan is based on five main issues:
1) Sustainability Manage triple bottom line (economic/environmental/social) performance to support a sustainable Alameda o Deliver and maintain 100% clean energy resources by 2020 and beyond o Support opportunities in the electrification of the transportation system and buildings to reduce Green House Gas (GHG) emissions
2) Customer Experience Increase value to the community through meaningful programs and services, positive customer interactions, and building the brand o Define and promote brand to improve awareness and value o Build an employee culture that consistently promotes value and principles of public power and customer service o Maximize opportunities to meet customer needs and improve engagement
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3) Business Resiliency Maintain competitiveness and financial performance by utilizing sustainable resources and operational excellence o Develop a utility asset management plan o Develop financial planning processes that provide fiscal stability, linking service priorities with associated costs o Ensure quality, efficiency, and knowledge transfer by documenting standard operating procedures o Implement succession plans that ensure continuity of operations o Perform an assessment of the organizational structure
4) Technology Optimize technology to meet the evolving business environment o Update technology roadmap to guide our technology-related investments and decisions o Leverage Advanced Metering Infrastructure (AMI) systems to enhance the customer experience, operations, financial forecasting, and marketing o Develop a training plan that supports effective technology adoption, improves utilization, and enables an adaptable workforce
5) Workforce Attract and retain employees while fostering a collaborative culture and adapting to changing industry trends o Develop a talent outreach plan that highlights the benefits and opportunities of working at AMP to increase talent pool for positions and ensure needed staffing levels o Design a training and career development model to enhance employee job satisfaction
AMP has developed KPIs to measure the performance of the utility and has set specific targets for each issue identified. On January 2020, AMP attained 100% clean-energy portfolio and will continue to remain at 100% for future years while maintaining a competitive position.
AMP’s rates and fees are intended to recover the actual cost of providing service to each customer, remain competitive with those providing similar services in surrounding communities, and provide a return to the City. At its January 2020 meeting, the Board approved a five-year ratemaking policy for FY 2021 through 2025. The Board adopted financial guidelines that included a debt service coverage ratio of 1.75 times AMP’s total debt service and an operating cash reserve requirement that is at least 145 days for operations during unforeseen events. At its regular meeting conducted April 2020, the Board approved no increase in rates for FY 2021. The zero increase in rates is due partly to COVID-19 pandemic that began in March 2020. AMP determines the recommended rates based on the results of the 10-year pro forma model, a tool that enables staff to incorporate key assumptions and determine the rate adjustment needed to comply with financial guidelines.
AGENDA ITEM NO.: 4.F MEETING DATE: 03/15/2021 EXHIBIT D
The 10-year pro forma model will continue to be used as a tool to consider yearly adjustments. Additional rate increases could be forecast during these years as key cost drivers, such as rising power and transmission charges, increased operating expenses, and lower load forecasts (translating into lower sales and lower revenue), exert upward pressure on rates. AMP will continue to investigate options to assure that revenues are sufficient to cover the cost of providing quality service to its customers.
In its continuing commitment to provide the most reliable power for Alameda and in support of community development goals, AMP continues to improve its electric distribution network through capital improvements to the supervisory control and data acquisition (SCADA) system and electrical equipment; providing new electric services for residential and business development; providing increased circuit cleansing, maintenance and inspection of high voltage components; upgrading internal systems; as well as a variety of routine enhancements including selected street light replacements, transformer inspections, and meter work.
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0 JUL AUG SEP OCT NOV DEC JAN FEB MAR APR MAY JUN Electric Capital Additions Budget vs. Actual Budget Actual YTD through June, 2020
Several modifications to the CIP strategic plan occurred during FY 2020 that impacted planned construction budgets and schedules. Projects that were lower than budget because of material, labor, or contractor availability were 1) distribution poles replacement, vehicle replacements, inventory long lead purchase orders that were placed but not received in FY2020 and will be AGENDA ITEM NO.: 4.F MEETING DATE: 03/15/2021 EXHIBIT D
categorized as inventory and not in capital additions, 2) replacement of AMI Meter Base Clips 3) underground utility district (UUD), and 4) distribution system enhancements and replacements. Alameda Point Site A, Admiral's Cove, Sea Plane Lagoon Ferry Terminal, Marina, and Harbor Bay Parkway developments have been undergoing engineering and development work. The Community Solar project was evaluated in FY2020 and will continue to be reviewed and assessed for future implementation. Project that exceeded budget was Network server upgrades.
AMP has a goal to be “as reliable as the top quartile of electric utility providers in the Western United States”. AMP surpassed that goal during FY 2020, even though several unplanned events caused system outages.
In any successful strategic plan, flexibility is a fundamental element that allows for immediate assignment of resources to address specific system issues and promotes action to leverage opportunities when adapting to changing market conditions. The procurement processes that AMP utilizes support critical capital spending plans. The success of this strategy is evidenced in our reliability record which is summarized in the chart below.
1.2 FY2020 Outages/Customer - SAIFI
1.0
0.8
0.6 0.50 0.50
# of outages # of outages 0.4 regional avg * 0.15 0.2 0.10 0.10 0.11 0.11 0.11 0.11 0.12 natl. top quartile * 0.00 0.00 0.0 Aug 19 Aug 19 Oct 19 Dec 20 Feb 20 Apr 20 Jun
Month
In addition to the reliable services provided to its customers, AMP has transferred $4.0 million to the City’s General Fund in accordance with Measure M approved by voters in November 2016 and paid $1.5 million in Payments-In-Lieu-Of-Taxes (PILOT) and has effectively reduced the tax burden of residents thus improving the quality of life in Alameda while maintaining substantially lower rates than nearby investment-owned utilities.
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Economic Conditions and Outlook
The City of Alameda is an island community with residential neighborhoods and commercial areas. There are scenic views of Oakland, San Francisco, and other areas of the Bay shoreline. The City has highway links to the City of Oakland to the north and east, and offers ferry services to San Francisco from two locations.
The California Department of Finance shows a population of 81,312 people residing in Alameda in FY 2020 versus 79,316 people in FY 2019, an increase of 2.5%. Alameda’s unemployment rate dropped from 2.8% in FY 2019 to 2.6% in FY 2020. It is anticipated that the population of Alameda will increase as new housing units are constructed and occupied at the former Naval Station (aka as Alameda Point) and elsewhere in the City.
Alameda’s business enterprises range in scope from the US Coast Guard Integrated Support providing, regulation administration of transport, to City of Alameda, providing local governmental support and services, to Alameda Commercial Properties and G&I IX Marina Village Office Park, providing real estate management services, to Penumbra providing designing and manufacturing innovative medical devices, to Alameda Unified School District, to City of San Leandro Health Care, providing health services, to the Maritime Administration providing a ready- fleet of ships, to Safeway, providing groceries, and Peet’s Coffee, providing coffee and retail goods. The diversity of businesses and their unique electricity needs continues to be reliably served by the backbone of the electric distribution network.
Overall, the outlook for the City of Alameda is generally stable. Investors continue to demonstrate their faith in the strengths of the community by continuing capital improvements and through community planning development for Alameda Point. AMP continues to recognize trends developing in the market place and has adjusted its system expansion budget.
AMP understands that in addition to being responsive to the community, it must assess its risks and plan accordingly. This planning is especially important at this time since operating expenses are expected to escalate as certain power supply contracts expire, renewable energy continues to be prominent in the portfolio, and transmission costs escalate.
Major Initiatives
Community Involvement Through a wide range of customer programs and events, and in partnership with local agencies, AMP maintains a strong presence in the community. AMP sponsors a variety of organizations and local events annually and uses many communication channels to educate customers about topics such as electric vehicles, solar, energy efficiency and sustainability. AMP’s customer communication channels include a monthly newsletter and bill insert, which promote safety education as well as various customer programs and services.
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Major Initiatives in 2020 While AMP normally hosts in-person events for customers each year, the COVID-19 crisis caused the utility to change its customer engagement strategy in 2020. Throughout this unprecedented year, AMP worked with customers experiencing financial hardship during COVID-19. AMP met the community’s needs in a number of ways: • AMP placed a moratorium on electric service disconnections for non-payment for customers facing financial hardship as a result of COVID-19 and suspended all penalties for late payments. • Utility staff continuously promoted AMP’s bill savings, financial assistance programs and payment plans to commercial and residential customers. • Through the utility's "Power Up for Learning" program, AMP customers had the opportunity to support distance learning for local public school students during the pandemic. • AMP’s direct-install program continues to offer energy efficiency upgrades to low-income customers at no cost. • AMP launched new rebates for used electric vehicles with enhanced incentives for low- income customers.
Economic Development The City of Alameda and AMP continue to encourage new and existing businesses to develop in Alameda. Alameda is an excellent choice for energy-sensitive businesses and is centrally located within the San Francisco Bay Area. While having one of the best records of reliability, customers enjoy electric rates significantly lower than those of nearby cities served by other utilities.
A portion of the east and west ends of Alameda has seen significant growth. During FY 2020, AMP continues support development at Alameda Point - Site A, Admiral's Cove, Sea Plane Lagoon Ferry Terminal, Marina, and Harbor Bay Parkway. AMP moved forward with replacing the SF6 breakers at the Cartwright substation and will do the same in FY 2021 for the NCPA- Combustion Turbine substation. AMP changed the methodology to charge new development for service laterals to ensure new developments pay an equitable share for new service. In February 2019 AMP obtained Board approval to start work on the Otis/Broadway Underground Utility District and rolled out the design phase. AMP continues to work on system enhancements and improvements to better serve customers.
Customer Service AMP’s customers can call during business hours to obtain information about their bill, make a payment, inquire about energy efficiency programs, the solar rebate program, request new service, or discontinue service. Customers have seven bill payment options when paying their electric bill. There are no additional fees for any of these bill payment options.
• Automatic Payment Service (Easy Pay) • Electronic Bill Presentment/Payment (EBPP) • On-line Credit/Debit Card Payment • Credit Card Payments by Phone • U.S. Mail • In-Person Payments • Pay Station AGENDA ITEM NO.: 4.F MEETING DATE: 03/15/2021 EXHIBIT D
Customers can also utilize AMP’s website to obtain an array of information regarding programs, services, events, Public Utility Board meetings, and other areas of interest.
Solar Rebates and Alternative Fuel Vehicles AMP continues to support community efforts for reducing greenhouse gases through its solar programs and by its use of alternative-fuel vehicles, including both all-electric and hybrid electric/gasoline vehicles. AMP installed two level-three charging stations at its service center which charge a vehicle within approximately seven minutes. AMP will continue to monitor electric vehicle charging stations to assess electric vehicle charging patterns as more all-electric vehicles begin to be utilized by the community.
Alameda Point Telephone System AMP took over the operation of the telephone plant at Alameda Point on July 1, 2000 and converted the operation to a self-sustaining portion of the utility. AMP charges installation and monthly recurring fees to provide for the recovery of maintenance expenses. Capital plant investment for the Alameda Point telephone system have been minimized because the telephone cable pairs to extend telephone services from the AT&T Minimum Point of Entry (MPOE) to tenants leasing space and housing on Alameda Point are temporary. Existing telephone circuits will be abandoned as Alameda Point is redeveloped. In the future, it is expected that a state- certified communications carrier will construct telephone facilities on Alameda Point as part of the overall development plan. Until Alameda Point’s redevelopment plans are implemented, the Alameda Point telephone system will continue to support residents, business and economic development by providing access to the public dial telephone network.
Management’s Statement of Responsibility
AMP’s management is responsible for the integrity and objectivity of all financial data included in this annual report. The statements have been prepared in accordance with accounting principles generally accepted in the United States. The financial data includes amounts that are based on the best estimates and judgments of management.
AMP’s management takes seriously its responsibility to establish and maintain an effective internal control system. It employs a variety of administrative and accounting processes that form its internal control system. The controls provide reasonable, rather than absolute assurance, that the financial statements are free of any material misstatements because internal control costs should not exceed the benefits derived. Management periodically reviews the internal control system. Actions are taken to correct deficiencies as they are identified. AMP maintains high standards in selecting, training, and developing personnel to assure that its operations are conducted in conformity with applicable laws and is committed to maintaining programs to encourage and assess compliance with the highest standards of personal and business conduct.
Independent Audit
California State statutes and the City of Alameda’s charter require an annual audit of AMP's financial records and transactions. Eide Bailly, LLP, a certified public accounting firm, is contracted to independently audit the financial information of AMP. Eide Bailly, LLP was AGENDA ITEM NO.: 4.F MEETING DATE: 03/15/2021 EXHIBIT D AGENDA ITEM NO.: 4.F MEETING DATE: 03/15/2021 EXHIBIT D
Principal Officers
(As of June 30, 2020)
PUBLIC UTILITIES BOARD
Ann McCormick, President
Jerry Serventi, Vice President
Laura Giuntini, Commissioner
Jeff Gould, Commissioner
City Manager, Eric J. Levitt
GENERAL MANAGER
Nicolas Procos
MANAGERS
Robert J. Orbeta, Assistant General Manager – Administration
Rebecca Irwin, Assistant General Manager – Customer Resources
Vidhi Chawla Assistant General Manager – Energy Resource Planning
Andre Basler Assistant General Manager – Engineering & Operations
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City of Alameda Alameda Municipal Power Organizational Chart
General Manager
Assistant General Assistant General Assistant General Assistant General Manager Manager Manager Manager
xvi Administration Customer Resources Energy Resource Planning Engineering & Operations
Support Information Key Accounts Customer Power & Electric Engineering Compliance Services Systems & Programs Service Program Support Line Section
Finance/ Communications Dispatch Substations Accounting AGENDA ITEM NO.: 4.F MEETING DATE: 03/15/2021 EXHIBIT D
Government Finance Officers Association Certificate of Achievement for Excellence in Financial Reporting
Presented to Alameda Municipal Power California
For its Comprehensive Annual Financial Report For the Fiscal Year Ended
June 30, 2019
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Independent Auditor’s Report
Public Utilities Board Alameda Municipal Power Alameda, California
Report on the Financial Statements We have audited the accompanying financial statements of Alameda Municipal Power (AMP), an enterprise fund and department of the City of Alameda, California, as of and for the years ended June 30, 2020 and 2019, and the related notes to the financial statements as listed in the table of contents.
Management’s Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.
Auditor’s Responsibility Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
What inspires you, inspires us. | eidebailly.com
2151 River Plaza Dr., Ste. 308 | Sacramento, CA 95833-4133 | T 916.570.1880 | F 916.570.1875 | EOE AGENDA ITEM NO.: 4.F MEETING DATE: 03/15/2021 EXHIBIT D
Opinion In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of AMP, as of June 30, 2020 and 2019, and its changes in financial position, and cash flows thereof for the years then ended in accordance with accounting principles generally accepted in the United States of America.
Emphasis of Matter
Individual Fund Financial Statements As discussed in Note 1 to the financial statements, the financial statements present only the AMP electric enterprise fund, which is a department of the City of Alameda, and do not purport to, and do not, present fairly the financial position of the City of Alameda, California, as of June 30, 2020, and the changes in its financial position, or where applicable, its cash flows for the year then ended in conformity with accounting principles generally accepted in the United States of America. Our opinion is not modified with respect to this matter.
Other Matters
Required Supplementary Information Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis, schedule of proportionate share of the City’s net pension liability, schedule of AMP’s pension contributions, schedule of AMP’s proportionate share of the City’s net OPEB liability, and schedule of AMP’s OPEB contributions, as listed on the table of contents, be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.
Other Information Our audit was conducted for the purpose of forming an opinion on the financial statements as a whole. The introductory section, statistical section and bond disclosure section are presented for purposes of additional analysis and are not a required part of the basic financial statements. The introductory, statistical and bond disclosure sections have not been subjected to the auditing procedures applied in the audit of the basic financial statements and, accordingly, we do not express an opinion or provide any assurance on them.
AGENDA ITEM NO.: 4.F MEETING DATE: 03/15/2021 EXHIBIT D
Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated February 25, 2021 on our consideration of AMP’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of AMP’s internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering AMP’s internal control over financial reporting and compliance.
Sacramento, California February 25, 2021 AGENDA ITEM NO.: 4.F MEETING DATE: 03/15/2021 EXHIBIT D
As management of Alameda Municipal Power (AMP), we offer readers of AMP’s financial statements this narrative overview and analysis of the financial activities of AMP for the year ended June 30, 2020. Readers are encouraged to consider the information presented here in conjunction with information contained in the preceding transmittal letter, the accompanying financial statements and notes, the statistical section of the comprehensive annual financial report and the bond disclosure information.
FINANCIAL STATEMENTS OVERVIEW
The basic financial statements present the financial picture of AMP from an economic resources measurement focus using the accrual basis of accounting similar to a private-sector business.
The Statement of Net Position presents information on AMP’s assets, deferred outflows/inflows, and liabilities with the difference reported as net position. The primary purpose of this Statement is to provide relevant information about AMP’s assets, liabilities, deferred outflows/inflows, net position, and their relationships to each other at the year-end closing date. The information provided in the Statement, used with related disclosures and information in other financial statements, helps the public, creditors, and others assess AMP’s ability to continue to provide services, understand its liquidity, financial flexibility, and its ability to meet obligations.
The Statement of Revenues, Expenses and Change in Net Position present relevant information showing how AMP’s resources were used in providing services and how AMP’s net position changed during the period. The information helps the public, creditors, and others to evaluate the organization's performance. The Statement allows the reader to assess AMP's service efforts, its ability to continue to provide services, the results of management’s stewardship, and other aspects of performance.
The Statement of Cash Flows presents relevant information about cash receipts and payments and the net change in cash resulting from AMP’s operating, investing, and financing activities during the period. The Statement provides information for investors, creditors, and others, to evaluate AMP’s financial position, its ability to generate future cash flows, its ability to pay bills and meet obligations, and the differences between net income and net cash provided (used) by AMP’s operating, investing, and financing activities during the period.
FINANCIAL HIGHLIGHTS
. AMP’s total net position increased by $1.3 million for the year ended June 30, 2020 while last year an increase of $2.8 million was reported. . The increase of $1.3 million to the total net position comes from a combination of factors including:
o Current Assets increased by $4.9 million for the year ended June 30, 2020 while last year’s current assets increased by $6.7 million. The change in current assets was mainly driven by increased investments due to $1.8 million additional developer deposits for future developments, lower capital expenditures, and lower operating expenses. Accounts receivable increased by $715k as some business customers were impacted by the COVID-19 and were temporarily closed. AMP increased the bad debt reserves by $330k relating to the COVID-19. Green House Gas (GHG) related receivables decreased $946k as the Renewable Energy Credit (REC) sales ended on December 31, 2019. Materials and supplies decreased $710k as transformers and poles that were purchased in FY 2019 were utilized for restoration and maintenance as well as some development work. AGENDA ITEM NO.: 4.F MEETING DATE: 03/15/2021 EXHIBIT D
o Capital Assets net of depreciation decreased $1.3 million for the year ended June 30, 2020, while last year’s decrease was $1.5 million (see note 3 for additional information regarding capital assets and depreciation amounts).
o Other Non-current Assets increased by $2.8 million for the year ended June 30, 2020 while last year an increase of $3.8 million was reported. This change was primarily due to an increase of $1.1 million for Underground Utility Districts (UUD) reserve, $795k for Low Carbon Fuel Standard (LCFS) reserve, and $986k for REC and Cap & Trade reserves. (see note 2 for additional information regarding restricted and designated investments).
o Deferred Outflow of Resources increased by $5k for the year ended June 30, 2020 while last year was reported a decrease of $2.7 million to pensions.
o Current Liabilities increased by $2.1 million for the year ended June 30, 2020, while last year an increase of $770k was reported. The change was primarily due to an increase of $1.8 million in deposits for transformers and various development projects.
o Non-current Liabilities increased by $1.9 million for the year ended June 30, 2020 while last year an increase of $2.5 million was reported. The change was primarily due to a decrease of $1.4 million in long term debt (net of current portion), an increase of $2.4 million in net pension liability, an increase of $90k in OPEB liability, and an increase of $768k claims liability (see note 10B for additional information).
o Deferred Inflow of Resources increased $1.2 million primarily as a result of the balancing account adjustment (see note 1C for additional information). . Electric fund operating revenue decreased $12k for the year ended June 30, 2020 while last year had an increase of $2.5 million. Electricity sales revenue increased $1.7 million while GHG sales decreased $1.4 million due to the end of the REC sales on December 31, 2019. Jobbing Sales decreased $452k and miscellaneous services such as field visits decreased $148k. . Excluding purchased power, depreciation and the balancing account, electric fund operating expenses for the year ended June 30, 2020 decreased $2.0 million while last year had an increase of $1.5 million. General and administration costs increased $2.3 million as a result of higher wages, increased benefit expense, and higher pension and OPEB expenses. Jobbing sales expense decreased by $438k, and customer service, energy efficiency and customer relations expenses increased by $99k. . Purchased power expenses increased $2.7 million for the year ended June 30, 2020, while last year a $968k increase was reported. Increase in purchase power was primarily due to higher transmission costs, reduced market revenue prices, and replacement purchases for the Geothermal plants during the Kincaid Fire in late 2019. . Depreciation and amortization expense increased $42k for the year ended June 30, 2020, while last year a $516k decrease was reported. . The balancing account adjustment, which is used to stabilize rates, decreased $3.8 million, while last year it was increased by $2 million (see note 1C for additional information on the deferred inflows of resources related to balancing account). . Electric fund non-operating revenues/expenses had a net decrease of $491k in spending for the year ended June 30, 2020 while last year a net increase in spending of $2.8 million was reported mainly from investments in NCPA projects and changes in investment interest income. AGENDA ITEM NO.: 4.F MEETING DATE: 03/15/2021 EXHIBIT D
o Interest income was higher by $328k and interest expense was lower by $69k for the year ended June 30, 2020 while last year interest income was higher by $794k and interest expenses was lower by $64k.
o Loss from disposition of capital assets was $163k during the year ended June 30, 2020. o Fair value of NCPA Projects and Reserves decreased by $778k during the year ended June 30, 2020, while last year an increase of $1.3 million was reported.
o Miscellaneous non-operating revenue/expense had a net increase of $107k for the year ended June 30, 2020 while last year a net decrease of $164k was reported. . AMP continued its support of the City’s general fund with a voter approved contribution of $4 million in FY 2020. . Cash and equivalents decreased $450k for the year ended June 30, 2020 while last year an increase of $2.9 million was reported. The results come from a combination of factors including:
o Net cash provided by operating activities decreased $1.6 million for years ended June 30, 2020 and 2019. FY 2020 employee payments decreased $1.4 million while FY 2019 an increase of $1.5 million relating to the renegotiated labor contracts. REC, C&T, and LCFS sales decreased $342k mainly due to the end of REC sales on December 31, 2019. Customer receipts increased $815k in FY 2020 compared to $1.5 million in FY 2019. Supplier payments increased $3.6 million while prior year saw an increase of $2.2 million as additional inventory and transformers were purchased during the year.
o Net cash used for non-capital financing activities increased $241k while last year it was reported that net cash used for non-capital financing activities decreased $4.2 million from the previous year. FY 2018 reflected $4.4 million non-cash streetlight asset transfer to the City.
o Net cash used for capital and related financing activities increased $403k while last year it was reported that net cash used in capital and related financing activities decreased $201k. The FY 2020 increase was mainly due purchases of capital assets.
o Net cash used for investing activities increased $1.2 million while last year it was reported that net cash provided for investing activities increased $3.7 million. Interest receipts increased $534k in FY 2020 due to investment portfolio diversification and higher interest rates as well as an increase of $330k in market value. Special purpose investment usage increased $2 million as REC sales expired December 31, 2019, and NCPA investment decreased by $325k. AGENDA ITEM NO.: 4.F MEETING DATE: 03/15/2021 EXHIBIT D
COMBINED NET POSITION
AMP’s Combined Net Position as of June 30:
(Dollars in thousands) 2020 2019 2018 Assets: Current Assets $ 63,251 $ 58,383 $ 51,663 Capital Assets, net of depreciation 38,385 39,714 41,206 Other Non-current Assets 54,004 51,150 47,307 Total Assets 155,640 149,247 140,176
Deferred Outflow of Resources 3,226 3,221 5,926
Liabilities: Current Liabilities 10,452 8,364 7,594 Non-current Liabilities 49,770 47,898 50,353 Total Liabilities 60,222 56,262 57,947
Deferred Inflow of Resources 27,950 26,776 21,553
Net Position: Net Investment in Capital Assets 30,185 31,576 33,129 Restricted 4,777 4,720 4,662 Unrestricted 35,732 33,134 28,811 Total Net Position $ 70,694 $ 69,430 $ 66,602
AGENDA ITEM NO.: 4.F MEETING DATE: 03/15/2021 EXHIBIT D
ANALYSIS OF NET POSITION
AMP’s combined total net position was $71 million as of June 30, 2020. Comparing this year results to the previous fiscal year, the combined total net position increased by $1.3 million, or 1.8% of last year.
The largest portion of combined total net position is the cash and cash equivalents, investments and interest, accounts receivable and inventory. The next largest contributor to AMP’s combined total net position is net investment in capital assets (e.g., land, utility plant, buildings, vehicles and equipment) less any related debt still outstanding that was used to acquire those assets. The capital assets are used to provide electric services and, consequently, are not available for future spending. Although AMP’s investment in capital assets is reported net of related debt, it should be noted that the resources to repay this debt must be provided from net revenues of the electric fund. The capital assets themselves cannot be used to liquidate these liabilities except under extraordinary circumstances. The third largest portion is the unrestricted Net Position from the renewable energy credit sales held in designated reserve accounts. AMP’s board may designate how these funds are expended.
The largest portion of combined total liabilities is used to finance AMP’s operations, construction, and NCPA activities. Total combined assets increased $6.4 million, or a 4.3% increase to last year’s total. Total combined Deferred Outflow of Resources increased $5k, or 0.2% increase to last year’s total. Deferred Inflow of Resources increased $1.2 million, or 4.4% increase to last year’s total relating to pensions, OPEB, and the balancing account. Total combined liabilities increased by $4.0 million, or a 7.0% compared to last year’s total. AGENDA ITEM NO.: 4.F MEETING DATE: 03/15/2021 EXHIBIT D
Combined Statement of Revenues, Expenses and Changes in Net Position as of June 30:
(Dollars in thousands) 2020 2019 2018 2017 2016 Operating Revenues Electric Sales $ 62,732 $ 61,028 $ 59,501 $ 55,926 $ 54,221 Other Services Revenue 4,334 6,050 5,101 7,523 7,792
Total Operating Revenues 67,066 67,078 64,602 63,449 62,013
Operating Expenses Purchased Power 32,246 29,587 28,618 28,201 29,781 Energy efficiency, solar, other 1,272 1,773 1,173 1,505 1,685 Operations and Maintenance 5,055 5,033 4,814 4,674 4,574 Customer Accounts, Information Systems 3,179 2,617 2,296 2,171 2,226 Administrative and General 12,262 9,955 10,527 7,425 7,733 Depreciation and Amortization 3,898 3,856 3,340 3,506 3,366 Sales Expense 587 549 506 530 540 Jobbing Sales Expense 804 1,242 368 994 315 Balancing Account 1,021 4,860 2,821 1,425 1,010
Total Operating Expenses 60,324 59,472 54,463 50,431 51,230
Total Operating Income (Loss) 6,742 7,606 10,139 13,018 10,783
Non-operating Revenue (Expense) Interest Income on Investments 1,973 1,645 851 473 316 Interest Expense (1,274) (1,343) (1,406) (1,461) (1,510) Gain (Loss) from Disposition (162) 38 (705) 86 - Other Expense 12 (6) (14) - - Increase (Decrease) in Value of NCPA Projects (566) 212 (1,125) 1,579 1,073 Alameda Point Phone Maintenance-Net 67 71 16 43 51 Misc Non-operating Income (Expense) 6 (101) 63 105 58 Telecommunications - - - - 10 Payment in-lieu of taxes (1,505) (1,475) (1,446) (1,418) (1,391)
Total Non-Operating Revenue (Expense) (1,449) (959) (3,766) (593) (1,393)
Income (loss) before Transfers and Special Item 5,293 6,647 6,373 12,425 9,390
Transfers in (to Telecom) - - - - 2,190 Transfer to City of Alameda (4,030) (3,818) (8,075) (2,800) (2,800) Transfers out (from Electric) - - - - (2,190)
Total Transfers (4,030) (3,818) (8,075) (2,800) (2,800)
Change In Net Position Electric 1,263 2,829 (1,702) 9,625 4,390 Telecommunications - - - - 2,200
Total Change In Net Position $ 1,263 $ 2,829 $ (1,702) $ 9,625 $ 6,590
AGENDA ITEM NO.: 4.F MEETING DATE: 03/15/2021 EXHIBIT D
ANALYSIS OF REVENUES, EXPENSES AND CHANGES IN NET POSITION
Changes in Net Position
Electric net position increased $1.3 million for the year ended June 30, 2020 while last year an increase of $2.8 million was reported. Operating revenues were consistent with prior year at $67 million while operating expenses increased $851k mainly due to pension expense and purchased power, offset by a decrease in the balancing account adjustment. Non-operating expenses increased $491k as the change in the value of the NCPA projects and reserves decreased $778k and return on investments increased $328k.
Condensed Statement of Changes in Net Position as of June 30:
(Dollars in thousands) 2020 2019 2018 2017 2016 Operating Revenues $ 67,066 $ 67,078 $ 64,602 $ 63, 449 $ 62,013 Operating Expenses 60,324 59,472 54,463 50,432 51,230 Operating Income 6,742 7,606 10,139 13,017 10,783
Total Non-operating Revenue (Expense) (1,449) (959) (3,766) (592) (1,403)
Transfers Out (4,030) (3,818) (8,075) (2,800) (4,990)
Change In Net Position $ 1,263 $ 2,829 $ (1,702) $ 9,625 $ 4,390
Operating Revenues
Electric operating revenue remained consistent with prior year at $67 million while last year increased by $2.5 million. Contributing to the FY 2020 results are revenues from electricity sales which increased by $1.7 million offset by $1.4 million decrease in GHG related sales and $452K decrease in jobbing sales. AGENDA ITEM NO.: 4.F MEETING DATE: 03/15/2021 EXHIBIT D
Electric Revenue (Total) for FY2020 = $67,066,350 ; FY2019 = $67,078,362; FY2018 = $64,602,195 35,000,000
30,000,000
25,000,000
20,000,000
15,000,000 2020
10,000,000 2019 2018 5,000,000
0 Residential Commercial - Commercial - Municipal Other Rate Other GHG General Demand Schedules Revenue Reduction Service Metered Sales
Sources of Electric Revenue
AMP's operating revenues are based on rate schedules authorized by the Board. Such rates are designed to recover AMP's cost of service and still be competitive with those in surrounding areas. Rates also provide a contribution to the City of Alameda; voters approved the contribution amount in November 2016.
Operating Expenses
Operating expenses, excluding the adjustment for balancing account accumulation, were higher than last year’s results by $4.7 million. In FY 2019, a $3.0 million increase from FY 2018 was reported. The increase experienced during FY 2020 was primarily increased power purchase costs and higher administrative and general expenses due to pensions and OPEB.
The Balancing Account is used by AMP to stabilize rates by accumulating differences between the actual costs of providing service with the related revenues designated for recovery of such costs.
AMP continues to experience volatility in California energy markets as seasonal weather impacts hydroelectric generation, natural-gas prices impact peak-demand electricity prices, geothermal generation is impacted by aging facilities, new landfill-gas generation becomes operational and new state laws and regulations are implemented for GHG reduction strategies. Although AMP recognizes that energy markets have stabilized since the energy crisis of 2000-2001, it is keenly aware that adverse energy markets may return due to a variety of factors that affect both the supply of and demand for electric energy in the Western United States.
AGENDA ITEM NO.: 4.F MEETING DATE: 03/15/2021 EXHIBIT D
The chart below offers a comparison of operating expenses for FY 2020, FY 2019, and FY 2018.
Non-Operating Revenues (Expenses)
Non-operating expenses in FY 2020 exceeded non-operating revenue by $1.5 million compared to the $959k recorded last year. Return on investment revenues were $2.0 million while expenses consisted of $162k loss from sale of capital assets relating to obsolete inventory and retirement of assets, $566k from NCPA projects and reserves, $1.3 million for interest expense for the 2010A/B bonds, and $1.5 million from payments in lieu of taxes.
ANALYSIS OF COMBINED CASH FLOWS
Net Change in Cash and Equivalents
Combined net change in cash and equivalents decreased by $450k for the year ended June 30, 2020 while last year an increase of $2.9 million was reported. AMP generates cash from its electric operations or utilizes its reserves to meet its operating needs including payments in lieu of taxes (PILOT), return on investment (ROI), and transfer to the City’s General Fund. AMP places Cap & Trade net revenues, GHG sales revenues, and Low carbon fuel standards sales revenues into investments for the Board designated special reserves for those funds. Changes in the cash flows are higher supplier payments relating to increased inventory and transformers, improved customer receipts relating to rate adjustments, decreased employee expenses, and change to investment in NCPA projects and reserves.
AGENDA ITEM NO.: 4.F MEETING DATE: 03/15/2021 EXHIBIT D
Combined Condensed Statement of Cash Flows as of June 30:
(Dollars in thousands) 2020 2019 2018 Operating Activities $ 18,080 $ 19,644 $ 20,946 Non-capital Financing Activities (5,535) (5,293) (9,521) Capital and Related Financing Activities (5,317) (4,915) (5,116) Investing Activities (7,678) (6,497) (2,811) Change in Cash and Equivalents $ (450) $ 2,939 $ 3,498
Cash Flows from Operating Activities
Cash from operating activities decreased $1.6 million from prior year. Customer receipts increased $815k relating to the rate increase in FY 2020. Payments to employees decreased $1.4 million compared to $1.4 million increase in FY 2019 relating to the negotiated labor contracts and increased benefit costs. REC Sales decreased $342k as the sales contract ended December 31, 2019. Payments to suppliers increased $3.6 million as payments were made for transformers and increased inventory for development projects. Miscellaneous payments and receipts increased $121k.
Cash Flows from Non-Capital Financing Activities
Cash flows from noncapital financing consisted of the transfer to the City and payments in lieu of taxes which were consistent with prior year and increase by the CPI on an annual basis. Payment in lieu of taxes is capped at 2% or CPI whichever is greater.
Cash Flows from Capital and Related Financing Activities
Cash flows used for capital and related financing activities were $5.3 million compared to $4.9 million in prior year due to $673k of transformer purchases. Debt interest and principal payments are $2.6 million per year.
During FY 2020, AMP’s capital asset additions for the electric system were $2.7 million and included projects to expand, replace, and enhance facilities, to improve their efficiency and reliability, to extend their useful life, to comply with laws and regulations, and/or to meet the increasing demands on the electric system. Specific capital work that occurred during FY 2020 include SF6 breakers at the Cartwright substation, AMI meter additions and expansion, Office equipment and machinery, communication equipment, and construction vehicles.
Cash Flows from Investing Activities
Cash flows used for Investing activities were $7.7 million compared to $6.5 million in prior year. Interest income increased $534k while investments purchased for special purposes increased $2.0 million. The reader is encouraged to read Note 2I for additional information on Designated Investments by the Board for special purposes.
AGENDA ITEM NO.: 4.F MEETING DATE: 03/15/2021 EXHIBIT D
ANALYSIS OF LONG-TERM DEBT
On August 4, 2010, AMP authorized the issuance of $8.7 million in Revenue Bonds, Series 2010A, and $22.99 million in taxable Revenue Bonds, Series 2010B. Proceeds were used to prepay the outstanding Electric System Revenue Series 2000A COPs and the Series 2000AT taxable COPs, to fund a security deposit for the 2010A/B bonds, and to pay the cost of issuance for the 2010 A/B bonds. The maturity date for the Series 2010A is July 1, 2030 and the maturity date for the Series 2010B is July 1, 2027. The reader is encouraged to read Note 4, and the statistical section of this report, for additional information regarding long-term debt and expected payments for this bond.
Long-Term Debt as of June 30:
(Dollars in thousands) 2020 2019 2018 Revenue Bonds, Series 2010A $ 8,700 $ 8,700 $ 8,700 Taxable Revenue Bonds, Series 2010B 12,755 14,095 15,370 Long-Term Debt $ 21,455 $ 22,795 $ 24,070
ANALYSIS OF CAPITAL ASSETS
AMP’s investment in capital assets for its electric operations amounts to $38.4 million, net of accumulated depreciation. The investment in capital assets includes land, buildings, construction-in-progress, electric utility plant, machinery and equipment, transportation, and computer equipment. Readers desiring more detailed information on capital asset activity should see Note 3 and information in the Statistical Section of this report.
Electric Capital Assets as of June 30:
(Dollars in thousands) 2020 2019 2018 Land and Rights $ 220 $ 220 $ 154 Construction In Progress 5,199 3,862 2,873 Utility Plant 87,422 86,915 86,124 Service Center Building 8,168 8,168 8,131 Machinery & Equipment 9,726 9,726 9,620 Transportation Equipment 3,406 3,403 3,318 Computer Equipment 4,683 4,377 4,168 Furniture & Fixtures 923 900 900 Easements - - 186 Less Accumulated Depreciation (81,362) (77,857) (74,268) Capital Assets, Net $ 38,385 $ 39,714 $ 41,206
AGENDA ITEM NO.: 4.F MEETING DATE: 03/15/2021 EXHIBIT D
ANALYSIS OF ECONOMIC FACTORS
Economic Factors and Next Year’s Budget
The adopted budget for FY 2021 continues to grow at a low rate reflecting the local economy and the sluggish demand for new electric vehicles from the commercial sector. During FY 2020, AMP continued its strategic planning activities to enhance focus on the customer, provide a forum for long-range financial planning, facilitate prioritization of limited resources, balance conflicting priorities, and provide for effective communication of goals and policies. The global pandemic of coronavirus caused the economy to be shutdown for a good part of the year and AMP was able to maintain a strong financial position exceeding budgeted revenue and reducing expenses.
AMP continues assessments of future financial needs; documents those needs in a 10-year pro-forma; manages Board established financial guidelines for rates, revenues and reserves; develops rate designs to meet financial guideline objectives; and continues to review opportunities to monetize its power supply resources. The adopted budget for FY 2021 includes electric operating revenues of $65 million reflecting zero rate increase from FY 2020. Per AMP’s Board, Renewable Energy Credit Revenues ended on December 31, 2019. Purchase power for FY 2021 is estimated to increase approximately $3.1 million due to market power purchase prices, ISO Load aggregation, wildfire insurance, and increased transmission costs.
Excluding purchased power, the adopted budget for FY 2021 includes $28.2 million in operating expenses or 7.0% higher than the FY 2020 expenses. The primary reason for the operating budget increase is $1.8 million in customer programs and computer services for software purchases and maintenance that were previously capitalized. AMP revised its capitalization policy to increase the minimal value of capitalized items.
The non-operating budget for FY 2021 is decreased $53k or 1.0% and includes funds for outside billing projects, debt related charges of $1.2 million, PILOT/ROI charges of $1.5 million and a transfer to the City of $4.0 million as a result of the approved voter proposal in November 2016. The budget assumes that no additional long-term debt will be needed during the fiscal year. The capital project budget for FY 2021 is estimated at $7.1 million and includes $1.5 million for UUD, $2 million for the Doolittle community solar project, $1.5M for inventory additions for long lead parts, and approximately $2.1 million for system additions, system enhancements, new load additions, vehicle replacement, and SF6 breakers for the NCPA Combustion Turbine.
The budget anticipates that operating revenues will be insufficient to meet all expenses during FY 2021 and that existing reserves will be used to cover expenses. As part of the financial planning process, the Board directed that a series of smaller rate adjustments implemented each year is preferred to a few large rate increases. The special reserves will provide funds for certain capital expenditures. Working capital will provide funds for any shortfall between revenue and expenditures.
Market Risk
Each year during budget development, AMP considers the risk exposure that it faces. The risk exposure can be categorized into broad categories including power supply risks, credit risks, other supply-based risks, demand side risks, legislative / regulatory risks, and other utility risks. AMP manages energy price risks through its involvement with NCPA and their energy commodity risk management policies, processes, and procedures to help mitigate fluctuations in energy prices. NCPA also monitors and manages credit risk with its trading counter parties. In addition to policies, processes and procedures, AMP manages its risk exposure by maintaining adequate reserves AGENDA ITEM NO.: 4.F MEETING DATE: 03/15/2021 EXHIBIT D
and establishing new reserves as needed. AMP is exposed to changes in interest rates primarily because of its borrowing and investing activities used for liquidity purposes and to fund business operations as well as finance capital expenditures.
AMP’s investment policy limits investments to financial instruments that maximize the safety of principal (See Note 2 to the Basic Financial Statements). In addition, AMP has restricted investments invested in accordance with guidelines established in the related bond documents.
REQUESTS FOR INFORMATION
This financial report is designed to provide the Board, Alameda citizens, taxpayers, creditors, and investors with a general overview of AMP’s finances. Questions concerning any of the information provided in this report or requests for additional information should be addressed to Alameda Municipal Power; Assistant General Manager - Administration; 2000 Grand Street; Alameda, California 94501.
AGENDA ITEM NO.: 4.F MEETING DATE: 03/15/2021 EXHIBIT D
Alameda Municipal Power Electric Enterprise Fund Statements of Net Position June 30, 2020 and 2019
2020 2019 Assets
Current Assets: Cash and cash equivalents (Note 2) $ 28,469,934 $ 28,919,531 Investments 23,612,935 17,276,229 Interest receivable 215,498 321,766 Accounts receivable, net 7,464,423 6,749,841 Greenhouse gas related sales receivable - 946,213 Materials and supplies 3,394,641 4,104,160 Prepaid and other 93,488 65,441
Total Current Assets 63,250,919 58,383,181
Non-current Assets: Capital assets (Note 3): Nondepreciable 5,418,634 4,082,363 Depreciable 114,328,408 113,489,028 Accumulated depreciation (81,362,299) (77,856,841)
Total capital assets, net 38,384,743 39,714,550
Restricted assets (Note 2) 4,777,285 4,719,758
Investments designated for special purposes (Note 2) 38,654,618 35,757,540
Investment in Joint Venture - Share of certain NCPA projects and reserve (Note 8) 10,572,051 10,673,031
Total Non-current Assets 92,388,697 90,864,879
Total Assets 155,639,616 149,248,060
Deferred Outflows of Resources Deferred amount on refunding 500,144 561,795 Deferred outflows related to pensions 2,666,288 2,657,801 Deferred outflows related to OPEB 59,672 1,509
Total Deferred Outflows of Resources 3,226,104 3,221,105 (Continued) AGENDA ITEM NO.: 4.F MEETING DATE: 03/15/2021 EXHIBIT D
Alameda Municipal Power Electric Enterprise Fund Statement of Net Position (Continued) June 30, 2020 and 2019
2020 2019
Liabilities
Current Liabilities: Accounts payable and accrued payroll $ 1,198,881 $ 1,206,336 Due to City of Alameda 325,692 300,508 Interest payable 606,067 640,525 Refundable deposits 6,061,796 4,219,174 Current portion of long term debt (Note 4) 1,410,000 1,340,000 Other accrued liabilities - 22,636 Current portion of compensated absences (Note 1C) 654,633 530,200 Current portion of claims liability (Note 10B) 195,000 105,013
Total Current Liabilities 10,452,069 8,364,392
Non-current Liabilities: Long term debt, net of current portion (Note 4) 20,045,000 21,455,000 Claims liability (Note 10B) 1,703,235 934,938 Net pension liability 26,437,127 24,012,403 Net OPEB liability 1,584,849 1,495,574
Total Non-current Liabilities 49,770,211 47,897,915
Total Liabilities 60,222,280 56,262,307
Deferred Inflows of Resources Balancing account 27,350,493 26,329,878 Deferred inflows related to pensions 560,522 360,913 Deferred inflows related to OPEB 39,015 85,624
Total Deferred Inflows of Resources 27,950,030 26,776,415
Net Position Net investment in capital assets 30,184,887 31,576,345 Restricted for: Debt service reserves (Note 2H) 4,777,285 4,719,758 Unrestricted 35,731,238 33,134,340
Total Net Position $ 70,693,410 $ 69,430,443
AGENDA ITEM NO.: 4.F MEETING DATE: 03/15/2021 EXHIBIT D
Alameda Municipal Power Electric Enterprise Fund Statements of Revenues, Expenses and Changes in Fund Net Position Years Ended June 30, 2020 and 2019
2020 2019 Operating Revenues: Sales $ 62,731,635 $ 61,027,633 Miscellaneous services 362,644 510,524 Plant leased to others 258,812 125,072 Jobbing sales 803,802 1,255,775 Cap and trade revenue 1,034,008 998,374 Greenhouse gas related sales 886,699 2,277,784 Low carbon fuel standard credit sales 988,750 883,200 Total Operating Revenues 67,066,350 67,078,362 Operating Expenses: Purchased power 32,246,283 29,586,832 Energy efficiency, solar and other 1,271,590 1,773,249 Operations and maintenance 5,055,482 5,033,334 Customer service, information systems 3,179,247 2,617,469 Administrative and general 12,261,784 9,954,555 Depreciation and amortization 3,898,011 3,856,302 Customer relations 587,487 548,723 Jobbing sales expense 803,802 1,242,159 Balancing account adjustment 1,020,615 4,860,258 Total Operating Expenses 60,324,301 59,472,881 Operating Income 6,742,049 7,605,481 Nonoperating Revenues (Expenses): Return on investments 1,934,656 1,584,596 Interest income on restricted investments 37,972 60,438 Interest expense (1,273,787) (1,342,703) Gain (Loss) from sale of capital assets (162,658) 37,880 Other income (expense) 12,490 (5,883) Increase (decrease) in value of certain NCPA projects and reserves (566,144) 212,080 Alameda Point phone maintenance-Net 66,926 71,417 Miscellaneous income (expense) 6,228 (101,345) Payment in-lieu of taxes (1,505,000) (1,474,996) Total Nonoperating Revenue (Expense) (1,449,317) (958,516) Income before Transfers 5,292,732 6,646,965 Transfers to City of Alameda (Note 5) (4,029,765) (3,818,400) Change in Net Position 1,262,967 2,828,565 Net position, beginning of year 69,430,443 66,601,878 Net position, end of year $ 70,693,410 $ 69,430,443
AGENDA ITEM NO.: 4.F MEETING DATE: 03/15/2021 EXHIBIT D
Alameda Municipal Power Electric Enterprise Fund Statements of Cash Flows Years Ended June 30, 2020 and 2019
2020 2019
Cash Flows from Operating Activities Receipts from customers $ 65,284,933 $ 64,469,549 Receipts from Special Sales (C&T and REC) 3,855,670 4,197,647 Payments to suppliers (45,046,314) (41,447,018) Payments to employees (6,124,914) (7,566,265) Miscellaneous payments and receipts 110,828 (9,801)
Net cash provided by Operating Activities 18,080,203 19,644,112
Cash Flows from Noncapital Financing Activities Transfers to General Fund of City of Alameda (4,029,765) (3,818,400) Payments in-lieu of taxes (1,505,000) (1,474,996)
Net cash used for Noncapital Financing Activities (5,534,765) (5,293,396)
Cash Flows from Capital and Related Financing Activities Purchase of Capital Assets (2,743,979) (2,364,907) Proceeds (loss) from disposition of capital assets 13,117 37,880 Long-term debt repayments (1,340,000) (1,275,000) Interest paid on long-term debt (1,246,594) (1,312,884)
Net cash used for Capital and Related Financing Activities (5,317,456) (4,914,911)
Cash Flows from Investing Activities Interest receipts 2,078,896 1,544,625 Investments designated for special purposes (9,233,784) (7,193,134) Investment in certain NCPA projects and reserves (465,164) (790,185) Investment in restricted assets (57,527) (58,255)
Net cash used for Investing Activities (7,677,579) (6,496,949)
Net increase (decrease) in cash and cash equivalents (449,597) 2,938,856
Cash and equivalents at beginning of year 28,919,531 25,980,675
Cash and equivalents at end of year $ 28,469,934 $ 28,919,531
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Alameda Municipal Power Electric Enterprise Fund Statements of Cash Flows (Continued) Years Ended June 30, 2020 and 2019
2020 2019
Reconciliation of operating income to net cash provided by operating activities: $ 6,742,049 $ 7,605,481
Adjustments to reconcile operating income to cash flows from operating activities: Depreciation and amortization 3,898,011 3,856,302 Pension expense 2,615,847 2,461,042 OPEB expense (15,497) (483,509) Decrease (increase) in accounts receivable 231,630 1,057,825 Decrease (increase) in materials and supplies 709,519 (327,674) Decrease (increase) in prepaids (28,047) (741) Increase (decrease) in accounts payable and accrued payroll (7,455) 277,799 Increase (decrease) in due to the City of Alameda 25,184 26,010 Increase (decrease) in balancing account 1,020,615 4,860,258 Increase (decrease) in refundable deposits 1,842,622 531,009 Increase (decrease) in other accrued liabilities (22,636) 22,636 Increase (decrease) in compensated absences 124,433 (30,369) Increase (decrease) in claims liability 858,284 (176,146) Miscellaneous payments and receipts 85,644 (35,811)
Net cash provided by (used in) operating activities $ 18,080,203 $ 19,644,112
Noncash Investing, Capital & Financing Activities Amortization of loss on refunding $ 61,651 $ 61,650
AGENDA ITEM NO.: 4.F MEETING DATE: 03/15/2021 EXHIBIT D
Alameda Municipal Power Electric Enterprise Fund Notes to Financial Statements June 30, 2020 and 2019
Note 1 - Summary of Significant Accounting Policies
A. General
Alameda Municipal Power (AMP) is a department of the City of Alameda (City) that operates the electric system. AMP provides this service to the businesses and residents of the City, Alameda Point (former Alameda Naval Air Station) and Coast Guard Island. AMP is under the policy control of the Public Utilities Board (Board), as set forth in the City Charter. The Board consists of five members appointed by the City Council, one of whom is the City Manager. The accompanying financial statements only reflect the activity of AMP, an enterprise fund of the City. These financial statements present only AMP and do not purport to, and do not, present fairly the financial position of the City and the changes in its financial position and cash flows, where applicable, in conformity with accounting principles generally accepted in the United States of America.
B. Basis of Presentation
AMP's basic financial statements are prepared in conformity with accounting principles generally accepted in the United States of America. The Governmental Accounting Standards Board is the acknowledged standard setting body for establishing accounting and financial reporting standards followed by governmental entities in the United States of America.
C. Basis of Accounting
AMP is accounted for as an enterprise fund (proprietary fund type). A fund is an accounting entity with a self- balancing set of accounts established to record the financial position and results of operations of a specific activity. The activities of an enterprise fund closely resemble those of the private sector in which the purpose is to conserve and add to economic resources. Enterprise funds account for operations that provide services on a continuous basis and are substantially financed by revenues derived from user charges.
The financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded at the time liabilities are incurred, regardless of when the related cash flows take place.
Investments in Joint Ventures – AMP records its equity in the general operating reserve of the Northern California Power Agency (NCPA), and its net equity in those projects in which it participates, as discussed in Note 8. AMP's share of individual project obligations has been netted against its share of the related project assets, as reported by NCPA, because AMP does not actively manage these projects and does not expect to become directly liable for any of the obligations of these projects. Amounts paid to the Transmission Agency of Northern California (TANC) are expensed currently because AMP's estimated equity, if any, in TANC is not material, as discussed in Note 9. Amounts paid to the Local Agency Workers Compensation Excess Joint Powers Authority are charged currently to insurance expense, as discussed in Note 10.
Cash and Cash Equivalents – For purposes of the statements of cash flows, AMP defines cash and cash equivalents to include all cash and temporary investments with original maturities of three months or less from the date of acquisition. AGENDA ITEM NO.: 4.F MEETING DATE: 03/15/2021 EXHIBIT D
Investments – are carried at fair value, as required by generally accepted accounting principles in the United States of America. AMP adjusts the carrying value of its investments to reflect their fair value at each fiscal year end, and it includes the effects of these adjustments in income for that fiscal year.
Materials and Supplies – are valued at average cost and are used primarily for internal purposes.
Maintenance and Repairs – are charged to maintenance expense as incurred.
Capital Assets – are valued at historical cost or estimated historical cost if actual historical cost is not available. AMP capitalizes all assets with a historical cost of at least $5,000 and a useful life of at least three years.
All capital assets with limited useful lives are depreciated over their estimated useful lives. The purpose of depreciation is to spread the cost of capital assets equitably among all users over the life of these assets. The amount charged to depreciation expense each year represents that year's pro rata share of the cost of capital assets.
Depreciation is provided using the straight-line method which means the cost of the asset is divided by its expected useful life in years and the result is charged to expense each year until the asset is fully depreciated. AMP has assigned the useful lives listed below to capital assets:
Utility Plant and Buildings 30-50 years Machinery and Equipment 10-40 years Transportation Equipment 5-10 years Computer Equipment 5 years Furniture and Fixtures 25 years
Major outlays for capital assets and improvements are capitalized as projects are constructed.
Some capital assets may be acquired using federal and state grant funds, or they may be contributed by developers or other governments. Contributions are accounted for at their acquisition cost at the time the capital assets are contributed.
Deferred Outflows and Inflows of Resources – deferred outflows of resources are a consumption of net position that is applicable to a future reporting period and deferred inflows of resources are an acquisition of net position that is applicable to a future reporting period. A deferred outflow of resources has a positive effect on net position, similar to assets, and a deferred inflow of resources has a negative effect on net position, similar to liabilities. AMP has certain items, which qualify for reporting as deferred outflows of resources and deferred inflows of resources.
Deferred Outflows of Resources – Deferred Loss on Refunding – is used by AMP to report the difference in the carrying value of the refunded debt and its reacquisition price for the 2010A/B Refunding Bonds. This amount is deferred and amortized over the shorter of the life of the refunded or refunding debt.
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Deferred Inflows of Resources – Balancing Account – is used by AMP to help stabilize rates. Specifically, the balancing account accumulates differences between the actual costs of providing a utility service with the related revenues designated for recovery of such costs. Deferred amounts are refunded to or recovered from customers through authorized rate adjustments, but can be reciprocally the beneficiaries of any temporary over-collection. The effect of using the balancing account is that unanticipated changes in sales levels and purchased power costs do not immediately affect AMP's rates because they are included in operating expenses as they are matched by revenues.
Deferred Inflows and Outflows Related to Pensions – deferred outflows related to pensions relates to the payment of pension contributions after the measurement date and differences between expected and actual experience. Deferred inflows related to pensions relates to the net differences between projected and actual earnings on pension plan investments, changes of assumptions, and differences between actual and expected experience. See Note 6 for further discussion.
Deferred Inflows and Outflows Related to Other Postemployment Benefits (OPEB) – deferred outflows related to OPEB relates to the payment of OPEB contributions after the measurement date, the net differences between projected and actual earnings on plan investments and changes of assumptions. Deferred inflows related to OPEB relates to changes of assumptions and differences between actual and expected experience. See Note 7 for further discussion.
Refundable Deposits – customer deposits are required by AMP from commercial customers when they establish their account. Deposits from residential customers are not required unless they abuse their credit privileges. Developers requesting higher rated transformers are required to provide deposits that are retained by AMP for approximately three years. At the end of the three-year period, AMP will evaluate the usage and determine if the transformer requirements are met. Developers also prepay for the distribution system substructure and part of the trunk costs for new developments within Alameda.
Unearned Revenue – AMP reports unearned revenue in connection with resources that have been received, but not yet earned.
Compensated Absences – including accumulated unpaid vacation, sick pay and other employee benefits are accounted for as expenses in the year earned. The liability for compensated absences includes the vested portions of vacation and compensated time off. The liability for compensated absences is determined annually.
Changes in compensated absences payable consist of the following:
2020 2019
Balance at beginning of fiscal year $ 530,200 $ 560,569 Compensated absences earned 614,795 562,459 Compensated absences taken (490,362) (592,828)
Balance at end of fiscal year $ 654,633 $ 530,200
Current Portion $ 654,633 $ 530,200
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Sales Revenues – sales of electricity are recognized based on cycle billings periodically rendered to customers. Revenues for services provided but not billed at the end of a fiscal year are recognized and accrued based on the estimated consumption.
D. Budgets and Budgetary Accounting
Although not required by California Government Code, AMP adopts an annual budget to serve as its approved financial plan. AMP follows these procedures in establishing the budget:
1. The General Manager submits to the Board a proposed operating budget for the fiscal year commencing the following July 1. The operating budget includes proposed expenditures and the means of financing them.
2. Ratepayer comments are solicited during regular Public Utilities Board meetings.
3. The budget is legally enacted through passage of a resolution.
4. The General Manager is authorized to transfer budgeted amounts between divisions; however, any revisions that increase the total expenditures must be approved by the Board. Expenditures may not legally exceed budgeted appropriations at the fund level without Board approval.
5. Unexpended appropriations lapse at year-end and must be re-appropriated in the following year.
6. Formal budgetary integration is employed as a management control device during the year.
7. Budgets are adopted on a basis consistent with generally accepted accounting principles, except that AMP budgets capital asset outlays as current year expenditures.
E. Net Position
It is AMP’s policy to apply restricted resources first when an expense is incurred for purposes for which both restricted and unrestricted net position is available.
Net Position is the excess of all AMP's assets and deferred outflows over all its liabilities and deferred inflows, regardless of fund. Net Position is divided into the captions below:
Net Investment in Capital Assets describes the portion of net position which is represented by the current net book value of AMP's capital assets, less the outstanding balance of any debt issued to finance these assets.
Restricted describes the portion of net position which is restricted as to use by the terms and conditions of agreements with outside parties, governmental regulations, laws, enabling legislation, or other restrictions which AMP cannot unilaterally alter.
Unrestricted describes the portion of net position which is not restricted to use.
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Designations are imposed by the Board to reflect future spending plans or concerns about the availability of future resources. Designations may be modified, amended or removed by Board action and are classified under unrestricted net position.
F. Classification of Revenues
Operating revenues consist mainly of electric services sales. Operating revenues are used to finance the cost of operations, including the cost of delivering and providing services, maintenance and recurring capital replacement and paying debt service. All other revenues and expenses not meeting this definition are reported as nonoperating revenues and expenses.
AMP distinguishes operating revenues and expenses from nonoperating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with AMP’s principal ongoing operations. The principal operating revenues are charges to customers for sales and services. Operating expenses include the cost of sales and services, administrative expenses, and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as nonoperating revenues and expenses.
G. Use of Estimates
The preparation of financial statements in conformity with generally accepted accounting principles (GAAP) requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, deferred outflows of resources, deferred inflows of resources and disclosures at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.
H. Pension
For purposes of measuring the net pension liability, deferred outflows of resources and deferred inflows of resources related to pensions, and pension expense, information about the fiduciary net position of AMP’s proportionate share of the City of Alameda’s agent multiple-employer defined benefit miscellaneous retirement plan (the Plan) administered by California Public Employees’ Retirement System (CalPERS) and additions to deductions from the Plan’s net position have been determined on the same basis as they are reported by the Plan. For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value.
I. OPEB
For purposes of measuring the net other post-employment benefits (OPEB) liability, deferred outflows of resources and deferred inflows of resources related to OPEB, and OPEB expense, information about the fiduciary net position of AMP's proportionate share of the City's Single-Employer OPEB Plan, as administered by the City, and additions to/deductions from the Plan's fiduciary net position have been determined on the same basis as they are reported by the Plan. For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value.
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J. Implemented GASB Pronouncements
GASB Statement No. 95 – In May 2020, GASB issued Statement No. 95, Postponement of the Effective Dates of Certain Authoritative Guidance. The objective of this Statement is to provide temporary relief to governments and other stakeholders in light of the COVID-19 pandemic. That objective is accomplished by postponing the effective dates of certain provisions in Statements and Implementation Guides that first became effective or are scheduled to become effective for periods beginning after June 15, 2018 and later. This Statement is effective immediately. AMP has determined that this Statement does not have an impact on the financial statements.
K. New Governmental Accounting and Reporting Standards
The Governmental Accounting Standards Board (GASB) releases new accounting and financial reporting standards which may have a significant impact on AMP’s financial reporting process. Future new standards which may impact AMP include the following:
GASB Statement No. 84 – In January 2017, GASB issued Statement No. 84, Fiduciary Activities. The objective of this Statement is to improve guidance regarding the identification of fiduciary activities for accounting and financial reporting purposes and how those activities should be reported. This Statement is effective for reporting periods beginning after December 15, 2019. AMP has not determined the effect on the financial statements.
GASB Statement No. 87 – In June 2017, GASB issued Statement No. 87, Leases. The objective of this Statement is to better meet the information needs of financial statement users by improving accounting and financial reporting for leases; enhancing the comparability of financial statements between governments; and also enhancing the relevance, reliability (representational faithfulness), and consistency of information about the leasing activities of governments. This Statement is effective for reporting periods beginning after June 15, 2021. AMP has not determined the effect on the financial statements.
GASB Statement No. 89 – In June 2018, GASB issued Statement No. 89, Accounting for Interest Cost Incurred before the End of a Construction Period. The objectives of this Statement are to enhance the relevance and comparability of information about capital assets and the cost of borrowing for a reporting period and to simplify accounting for interest cost incurred before the end of a construction period. This Statement is effective for reporting periods beginning after December 15, 2020. AMP has not determined the effect on the financial statements.
GASB Statement No. 90 – In June 2018, GASB issued Statement No. 90, Majority Equity Interest. The objective of this Statements is to improve the consistency and comparability of a reporting a government’s majority equity interest in a legally separate organization and to improve the relevance of financial statement information for certain component units. This Statement is effective for reporting periods beginning after December 15, 2019. AMP has not determined the effect on the financial statements.
GASB Statement No. 91 – In May 2019, GASB issued Statement No. 91, Conduit Debt Obligations. The objective of this Statements is to provide a single method of reporting conduit debt obligations by issuers and eliminate diversity in practice associated with (1) commitments extended by issuers, (2) arrangements associated with conduit debt obligations, and (3) related note disclosures. This Statement is effective for reporting periods beginning after December 15, 2021. AMP has not determined the effect on the financial statements. AGENDA ITEM NO.: 4.F MEETING DATE: 03/15/2021 EXHIBIT D
GASB Statement No. 92 – In January 2020, GASB issued Statement No. 92, Omnibus 2020. The objectives of this Statement are to enhance comparability in accounting and financial reporting and to improve the consistency of authoritative literature by addressing practice issues that have been identified during implementation and application of certain GASB Statements. Except for certain provisions, which are effective upon issuance. This statement is effective for fiscal years beginning after June 15, 2021. AMP has not determined the effect on the financial statements.
GASB Statement No. 93 – In March 2020, GASB issued Statement No. 93, Replacement of Interbank Offered Rates. The objective of this Statement is to address those and other accounting and financial reporting implications that result from the replacement of an IBOR. This Statement is effective for reporting periods beginning after December 31, 2021. AMP has not determined the effect on the financial statements.
GASB Statement No. 94 – In March 2020, GASB issued Statement No. 94, Public-Private and Public-Public Partnerships and Availability Payment Arrangements. The objective of this Statement is to improve financial reporting by addressing issues related to public-private and public-public partnership arrangements (PPPs). This Statement is effective for reporting periods beginning after June 15, 2022. AMP has not determined the effect on the financial statements.
GASB Statement No. 96 – In May 2020, GASB issued Statement No. 96, Subscription-Based Information Technology Arrangements. The objective of this Statement is to better meet the information needs of financial statement users by (a) establishing uniform accounting and financial reporting requirements for SBITAs; (b) improving the comparability of financial statements among governments that have entered into SBITAs; and the (c) enhancing the understandability, reliability, relevance, and consistency of information about SBITAs. This Statement is effective for reporting periods beginning after June 15, 2022. AMP has not determined the effect on the financial statements.
GASB Statement No. 97 – In June 2020, GASB issued Statement No. 97, Certain Component Unit Criteria, and Accounting and Financial Reporting for Internal Revenue Code Section 457 Deferred Compensation Plans – An Amendment of GASB Statements No. 14 and No. 84, and a Supersession of GASB Statement No. 32. The objective of this Statement are to (1) increase consistency and comparability related to the reporting of fiduciary component units in circumstances in which a potential component unit does not have a governing board and the primary government performs the duties that a governing board typically would perform; (2) mitigate costs associated with the reporting of certain defined contribution pension plans, defined contribution other postemployment benefit (OPEB) plans, and employee benefit plans other than pension plans or OPEB plans (other employee benefit plans) as fiduciary component units in fiduciary fund financial statements; and (3) enhance the relevance, consistency, and comparability of the accounting and financial reporting for Internal Revenue Code (IRC) Section 457 deferred compensation plans (Section 457 plans) that meet the definition of a pension plan and for benefits provided through those plans. This Statement is effective for reporting periods beginning after June 15, 2021. AMP has not determined the effect on the financial statements.
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Note 2 - Cash and Investments and Restricted Assets
A. Classification
Cash and investments are classified in the financial statements as shown below, based on whether or not their use is restricted under the terms of AMP debt instruments.
Cash and investments as of June 30 are as follows:
2020 2019
Cash and cash equivalents $ 28,469,934 $ 28,919,531 Investments 23,612,935 17,276,229 Restricted assets 4,777,285 4,719,758 Investments designated for special purposes 38,654,618 35,757,540
Total Cash and Investments $ 95,514,772 $ 86,673,058
B. Policies
California law requires banks and savings and loan institutions to pledge government securities with a market value of 110 percent of AMP's cash on deposit, or first trust deed mortgage notes with a market value of 150 percent of the deposit, as collateral for these deposits. Under California law this collateral is held in a separate investment pool by another institution in AMP's name and places AMP ahead of general creditors of the institution.
AMP and its fiscal agents invest in individual investments and in investment pools. Individual investments are evidenced by specific identifiable securities instruments, or by an electronic entry registering the owner in the records of the institution issuing the security, called the book entry system. Individual investments are generally made by AMP's fiscal agents as required under its debt issues.
C. Investments Authorized by the California Government Code and AMP's Investment Policy
AMP's investment policy and the California Government Code allow AMP to invest in the following, provided the credit ratings of the issuers are acceptable to AMP, and approved percentages and maturities are not exceeded. The table below also identifies certain provisions of the California Government Code, or AMP's Investment Policy where AMP's Investment Policy is more restrictive, that addresses interest rate risk, credit risk and concentration of credit risk.
This table does not address investments of debt proceeds held by bond trustees that are governed by the provisions of debt agreements of AMP, rather than the general provisions of the California Government Code or AMP's investment policy. AMP's investment policy and the California Government Code allow AMP to invest in the investments in the table below:
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Maximum Maximum Percentage Maximum Minimum Investment Type % or $ by Issuer Maturity Required Rating
Bank/Time Deposits No limit No limit 5 years N/A U.S. Treasuries Obligations No limit No limit 5 years N/A U.S. Agencies Securities 75% 25% 5 years N/A Mutual Funds and Money Market Funds 20% 10% 5 years Highest rating by 2 NRSROs Bankers' Acceptances 30% 5% 180 days A1/P1 or its equivalent Commercial Paper 25% 5% 270 days A1/P1 or its equivalent (with issuer rated A or its equivalent) CDs - non negotiable / CDARS 30% (combined with NCDs) 5% 3 years N/A Negotiable CDs 30% 5% 5 years No rating for amount under FDIC insurance; A-1 / A for amounts greater than FDIC insurance Local Agency Investment Fund (LAIF) LAIF Limit No limit N/A N/A CAMP / Caltrust No limit No limit N/A N/A Municipal Obligations 30% 5% 5 years A (except City’s own bonds) Medium Term Notes 30% 5% 5 years A or its equivalent Supranationals 15% (US Dollar denominated) 10% 5 years AA or its equivalent Asset-Backed Securities 20% 5% 5 years AA or its equivalent (with issuer rated A or its equivalent)
D. Investments Authorized by Debt Agreements
AMP must maintain required amounts of cash and investments with trustees or fiscal agents under the terms of certain debt issues. These funds are unexpended bond proceeds or are pledged as reserves to be used if AMP fails to meet its obligations under these debt issues. The California Government Code requires these funds to be invested in accordance with AMP’s ordinance, bond indentures or State Statute. The table on the next page identifies the investment types that are authorized for investments held by fiscal agents.
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The table also identifies certain provisions of these debt agreements:
Maximum Maximum Maximum Minimum Percentage Investment in Authorized Investment Type Maturity Credit Quality Allowed One Issuer
U.S. Treasury Obligations N/A N/A No Limit No Limit State Obligations N/A N/A No Limit No Limit U.S. Agency Securities (a) N/A N/A No Limit No Limit Commercial Paper N/A A1/P1/A 25% 5% Certificates of Deposit 5 years A1/A 30% 5% Bankers' Acceptances 180 days A1/P1 30% 5% Money Market Mutual Funds N/A A 20% No Limit Local Agency Investment Fund N/A N/A No Limit LAIF Limit Investment Agreements (b) N/A AA No Limit No Limit
(a) Securities issued by agencies of the federal government such as the Federal Farm Credit Bank (FFCB), the Federal Home Loan Bank (FHLB), the Federal National Mortgage Association (FNMA), and the Federal Home Loan Mortgage Corporation (FHLMC). (b) Investment agreements, including guaranteed investment contracts, repurchase agreements, forward purchase agreements and reserve fund put agreements.
E. Interest Rate Risk
Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of an investment. Generally, the longer the maturity of an investment, the greater the sensitivity of its fair value to changes in market interest rates. One of the ways that AMP manages its exposure to interest rate risk is by purchasing a combination of shorter term and longer-term investments and by timing cash flows from maturities so that a portion of the portfolio is maturing or coming close to maturity evenly over time as necessary to provide the cash flow and liquidity needed for operations.
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Information about the sensitivity of the fair values of AMP's investments (including investments held by bond trustees) to market interest rate fluctuations is provided by the following table that shows the distribution of AMP's investments by maturity, as of June 30, 2020 and 2019:
June 30, 2020 12 Months 13 to 24 25 to 60 or less Months Months Total Investments: Money Market Mutual Funds $ 1,211,002 $ - $ - $ 1,211,002 Federal Agency Securities 299,589 - 2,062,045 2,361, 634 Local Agency Investment Fund 54,592,511 - - 54,592,511 Corporate Bonds 504,753 1,140,630 5,432,513 7,077, 896 Certificates of Deposit 1,524,707 750,113 3,723,259 5,998, 079 Municipal Bonds 452,660 1,834,690 4,676,975 6,964, 325 Held by bond fiscal agent: Bond Mutual Funds 4,777,285 - - 4,777,285 Total Investments 63,362,507 3,725,433 15,894,792 82,982,732 Cash with Banks and Petty Cash 12,532,040 - - 12,532,040 Total Cash and Investments $ 75,894,547 $ 3,725,433 $ 15,894,792 $ 95,514,772
June 30, 2019 12 Months 13 to 24 25 to 60 or less Months Months Total Investments: Local Agency Investment Fund $ 49,382,192 $ - $ - $ 49,382,192 Corporate Bonds - 399,545 5,278,289 5,677, 834 Certificates of Deposit - 4,701,995 2,753,672 7,455, 667 Municipal Bonds - 456,586 3,686,312 4,142, 898 Held by bond fiscal agent: Bond Mutual Funds 4,719,758 - - 4,719,758 Total Investments 54,101,950 5,558,126 11,718,273 71,378,349 Cash with Banks and Petty Cash 15,294,709 - - 15,294,709 Total Cash and Investments $ 69,396,659 $ 5,558,126 $ 11,718,273 $ 86,673,058
AMP is a participant in the Local Agency Investment Fund (LAIF) that is regulated by California Government Code Section 16429 under the oversight of the Treasurer of the State of California. AMP reports its investment in LAIF at the fair value amount provided by LAIF, which is the same as the value of the pool share. The balance is available for withdrawal on demand and is based on the accounting records maintained by LAIF, which are recorded on an amortized cost basis. LAIF is not registered with the Securities and Exchange Commission and is not rated.
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F. Fair Value Measurement
AMP categorizes the fair value measurements of its investments based on the hierarchy established by generally accepted accounting principles. The fair value hierarchy, which has three levels, is based on the valuation inputs used to measure an assets’ fair value: Level 1 inputs are quoted prices in active markets for identical assets; Level 2 inputs are significant other observable inputs such as quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities in inactive markets; inputs other than quoted prices that are observable for the asset or liability; and inputs that are derived principally from or corroborated by observable market data by correlation or other means; Level 3 inputs are significant unobservable inputs.
Deposits and withdrawals in Local Agency Investment Fund (LAIF) are made on the basis of $1 and amounts are reported on an amortized basis which approximates fair value. Accordingly, AMP’s proportionate share in LAIF is an uncategorized input not defined as Level 1, Level 2, or Level 3 input.
As of June 30, 2020, and 2019, AMP has the following recurring fair value measurements:
June 30, 2020 Fair Value Measurements on a Recurring Basis Using Quoted Prices Significant Other Significant Active Markets for Observable Unobservable Balance at Identical Assets Inputs Inputs June 30, 2020 (Level 1) (Level 2) (Level 3) Investments by Fair Value Level Federal Agency Securities $ 2,361,634 $ - $ 2,361,634 $ - Corporate Bonds 7,077,896 - 7,077,896 - Certificates of Deposits 5,998,079 - 5,998,079 - Municipal Bonds 6,964,325 - 6,964,325 - Total Investments by Fair Value Level 22,401,934 $ - $ 22,401,934 $ - Investments Not Subject to Fair Value Hierarchy Local Agency Investment Fund 54,592,511 Money Market Mutual Fund 1,211,002 Total Investments Not Subject to the Fair Value Hierarchy 55,803,513 Investments Measured at Net Asset Value (NAV) Bond Mutual Funds 4,777,285 Total Investments $ 82,982,732
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June 30, 2019 Fair Value Measurements on a Recurring Basis Using Quoted Prices Significant Other Significant Active Markets for Observable Unobservable Balance at Identical Assets Inputs Inputs June 30, 2019 (Level 1) (Level 2) (Level 3) Investments by Fair Value Level Corporate Bonds $ 5,677,834 $ - $ 5,677,834 $ - Certificates of Deposits 7,455,667 - 7,455,667 - Municipal Bonds 4,142,898 - 4,142,898 - Total Investments by Fair Value Level 17,276,399 $ - $ 17,276,399 $ - Investments Not Subject to Fair Value Hierarchy Local Agency Investment Fund 49,382,192 Investments Measured at Net Asset Value (NAV) Bond Mutual Funds 4,719,758 Total Investments $ 71,378,349
G. Credit Risk
Generally, credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of the investment. This is measured by the assignment of a rating by a nationally recognized statistical rating organization. As an external investment pool, the Local Agency Investment Fund was not rated as of June 30, 2020 and 2019:
June 30, 2020
Investment Type AAA/Aaa AA+ / AA / AA- A+ / A / A- BBB+ /- Total
Bond Mutual Funds $ 4,777,285 $ - $ - $ - $ 4,777,285 Money Market Mutual Funds 1,211,002 - - - 1,211,002 Federal Agency Securities - 2,361,634 - - 2,361,634 Corporate Bonds - 583,202 6,259,686 235,008 7,077,896 Municipal Bonds 177,912 3,275,706 3,510,707 - 6, 964,325
Total $ 6,166,199 $ 6,220,542 $ 9,770,393 $ 235,008 22,392,142
Not rated: Certificate of Deposits 5,998,079 Local Agency Investment Fund 54,592,511
Total investments $ 82,982,732
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June 30, 2019
Investment Type AAA/Aaa AA+ / AA / AA- A+ / A / A- BBB+ /- Total
Bond Mutual Funds $ 4,719,758 $ - $ - $ - $ 4,719,758 Federal Agency Securities - - - - - Corporate Bonds - 1,005,957 4,671,877 - 5,677,834 Municipal Bonds 249,858 2,208,733 1,684,307 - 4,142,898
Total $ 4,969,616 $ 3,214,690 $ 6,356,184 $ - 14,540,490
Not rated: Certificate of Deposits 7,455,667 Local Agency Investment Fund 49,382,192
Total investments $ 71,378,349
Deposits
This is the risk that in the event of a bank failure, AMP’s deposits may not be returned to it. AMP’s policy, as well as the California Government Code, requires that a financial institution secure deposits made by state or local governmental units by pledging securities in an undivided collateral pool held by a depository regulated under state law (unless so waived by the governmental unit). The market value of the pledged securities in the collateral pool must equal at least 110 percent of the total amount deposited by the public agencies. California law also allows financial institutions to secure public deposits by pledging first trust deed mortgage notes having a value of 150 percent of the secured public deposits and letters of credit issued by the Federal Home Loan Bank of San Francisco having a value of 105 percent of the secured deposits. As of June 30, 2020, AMP’s bank balance of $12,530,040 was either collateralized or insured by the Federal Deposit Insurance Corporation (FDIC). AMP’s deposits with Hilltop Securities were insured up to $250,000 by FDIC. Hilltop Securities also had Securities Investor Protection Corporation (SIPC) coverage which provided an additional $500,000 coverage. Furthermore, Hilltop Securities had private insurance in excess of SIPC coverage with a $1.9M per-client limit. As of June 30, 2020, AMP’s investments balance with Hilltop Securities was $23,612,935.
Investments
As of June 30, 2020, none of AMP’s investments were held with counterparty. All of AMP’s investments were held with an independent third-party custodian bank. All of AMP investments held in custody and safekeeping are held in the name of AMP and segregated from securities owned by the bank. This is the lowest level of custodial credit risk exposure.
H. Concentration of Credit Risk
Concentration of credit risk is the loss risk attributed to the magnitude of investment in a single issuer. AMP’s investment policy places certain maximum percentage limitations of investments by investment type and AMP has adhered to this policy with no exception.
AGENDA ITEM NO.: 4.F MEETING DATE: 03/15/2021 EXHIBIT D
I. Restricted Assets
Restricted assets comprise the following:
June 30, 2020 2019 Restricted by Revenue Bond Series 2010A&B Indenture - Bond Fund - Bond Mutual Funds $ 2,024,609 $ 1,996,511 Restricted by Revenue Bond Series 2010A&B Indenture - Reserve Fund - Bond Mutual Funds 2,752,676 2,723,247
Total Restricted Assets $ 4,777,285 $ 4,719,758
Restricted by Revenue Bond Series 2010A&B Indenture - Bond Fund represents investments held with fiscal agent as required by the Revenue Bond indenture. The funds held by the trustee are to be used for the defeasance of certain obligations with respect to the Series 2010 A/B Revenue Bonds.
Restricted by Revenue Bond Series 2010A&B Indenture - Reserve Fund represents investments held with fiscal agent as required by the Revenue Bond indenture. The funds held by the trustee are to meet the “Common Reserve Fund Requirement” of the indenture.
J. Designated Investments
Investments designated by the Board for special purposes comprise of the following:
June 30, 2020 2019 Insurance Reserve $ 1,200,000 $ 1,200,000 Underground Special Fund 12,275,647 11,158,802 Renewable Energy Credits Energy Reserve 19,821,572 19,327,912 Cap and Trade Net Revenue Reserve 3,619,827 3,127,934 Low Carbon Fuel Standard Revenue Reserve 1,737,572 942,892
Total $ 38,654,618 $ 35,757,540
Insurance Reserve represents a portion of the retained risk, or deductible amount under AMP's liability insurance policy, which is purchased independent of the City's overall insurance program.
Underground Special Fund represents the amount set aside for the funding of the conversion of overhead facilities to underground facilities.
Renewable Energy Credits (REC) Energy Reserve represents the set aside of the resources generated from the sale of renewable energy credits through the REC trading markets regulated by the California Energy Commission.
AGENDA ITEM NO.: 4.F MEETING DATE: 03/15/2021 EXHIBIT D
Cap and Trade Net Revenue Reserve represents the set aside of resources generated by the Cap and Trade program which took effect in early 2012 to reduce greenhouse gas (GHG) emissions and is regulated by the California Air Resources Board.
Low Carbon Fuel Standard Revenue Reserve represents the set aside of resources generated from the sale of the banked credits to reduce the carbon intensity of transportation fuels in California by 10 percent by 2020. The program is administered by the California Air Resources Board (CARB).
Note 3 - Capital Assets
Capital asset activity for the years ended June 30, 2020 and 2019 is as follows:
Balance Balance June 30, 2019 Additions Retirements Transfers June 30, 2020 Capital assets not being depreciated: Land and Rights $ 220,143 $ - $ - $ - $ 220,143 Construction Work in Progress 3,862,220 2,743,979 - (1,407,708) 5,198,491 Total Capital Assets not being depreciated 4,082,363 2,743,979 - (1,407,708) 5,418,634 Capital assets being depreciated: Utility Plant 86,915,116 - (565,828) 1,072,494 87,421,782 Service Center Building 8,168,069 - - - 8,168,069 Machinery and Equipment 9,725,953 - - - 9,725,953 Transportation Equipment 3,402,639 - (2,500) 5,598 3,405,737 Computer Equipment 4,377,329 - - 306,419 4,683,748 Furniture and Fixtures 899,922 - - 23,197 923,119 Total Capital Assets being depreciated 113,489,028 - (568,328) 1,407,708 114,328,408 Less accumulated depreciation and amortization for: Utility Plant 57,243,753 3,249,677 (390,054) - 60,103,376 Service Center Building 4,418,751 180,960 - - 4,599,711 Machinery and Equipment 9,020,001 142,297 - - 9,162,298 Transportation Equipment 2,611,412 121,969 (2,500) - 2,730,881 Computer Equipment 3,948,836 163,839 - - 4,112,675 Furniture and Fixtures 614,088 39,270 - - 653,358 Total Accumulated Depreciation 77,856,841 3,898,012 (392,554) - 81,362,299 Total Depreciable Assets 35,632,187 (3,898,012) (175,774) 1,407,708 32,966,109 Capital assets, net $ 39,714,550 $ (1,154,033) $ (175,774) $ - $ 38,384,743
AGENDA ITEM NO.: 4.F MEETING DATE: 03/15/2021 EXHIBIT D
Balance Balance June 30, 2018 Additions Retirements Transfers June 30, 2019 Capital assets not being depreciated: Land and Rights $ 153,643 $ 66,500 $ - $ - $ 220,143 Construction Work in Progress 2,872,673 2,364,907 - (1,375,360) 3,862,220 Total Capital Assets not 3,026,316 2,431,407 - (1,375,360) 4,082,363 Capital assets being depreciated: Utility Plant 86,123,810 - - 791,306 86,915,116 Service Center Building 8,130,625 - - 37,444 8,168,069 Machinery and Equipment 9,620,376 - - 105,577 9,725,953 Transportation Equipment 3,318,156 - (148,133) 232,616 3,402,639 Computer Equipment 4,168,912 - - 208,417 4,377,329 Furniture and Fixtures 899,922 - - - 899,922 Easements 185,500 - (185,500) - - Total Capital Assets being depreciated 112,447,301 - (333,633) 1,375,360 113,489,028 Less accumulated depreciation and amortization for: Utility Plant 54,033,016 3,210,737 - - 57,243,753 Service Center Building 4,237,510 181,241 - - 4,418,751 Machinery and Equipment 8,892,168 127,833 - - 9,020,001 Transportation Equipment 2,621,613 137,932 (148,133) - 2,611,412 Computer Equipment 3,785,660 163,176 - - 3,948,836 Furniture and Fixtures 578,705 35,383 - - 614,088 Easements 119,000 - (119,000) - - Total Accumulated Depreciation 74,267,672 3,856,302 (267,133) - 77,856,841 Total Depreciable Assets 38,179,629 (3,856,302) (66,500) 1,375,360 35,632,187 Capital assets, net $ 41,205,945 $ (1,424,895) $ (66,500) $ - $ 39,714,550
Depreciation and amortization on capital assets and intangibles included in the statement of revenues, expenses and changes in net position for the years ended June 30, 2020 and 2019 was $3,898,012 and $3,856,302 respectively.
Note 4 - Long-Term Debt
A. Composition and Changes
AMP generally incurs long-term debt to finance projects or purchase assets which will have useful lives equal to or greater than the related debt. AMP's debt issues and transactions are summarized below and discussed in detail thereafter.
AGENDA ITEM NO.: 4.F MEETING DATE: 03/15/2021 EXHIBIT D
AMP does not have any debt that are direct borrowings or direct placements for the year ended June 30, 2020.
Long-term debt activity for the years ended June 30, 2020 and 2019 is as follows:
Original Balance Balance Current Issue Amount June 30, 2019 Additions Retirements June 30, 2020 Portion
Revenue Bonds, Series 2010A $ 8,700,000 $ 8,700,000 $ - $ - $ 8,700,000 $ -
Taxable Revenue Bonds, Series 2010B 22,985,000 14,095,000 - (1,340,000) 12,755,000 1,410,000
Total Long-term Debt $ 22,795,000 $ - $ (1,340,000) $ 21,455,000 $ 1,410,000
Original Balance Balance Current Issue Amount June 30, 2018 Additions Retirements June 30, 2019 Portion
Revenue Bonds, Series 2010A $ 8,700,000 $ 8,700,000 $ - $ - $ 8,700,000 $ -
Taxable Revenue Bonds, Series 2010B 22,985,000 15,370,000 - (1,275,000) 14,095,000 1,340,000
Total Long-term Debt $ 24,070,000 $ - $ (1,275,000) $ 22,795,000 $ 1,340,000
B. Description of Long-Term Debt Issues
Revenue Bonds, Series 2010A/B (AMP Refinancing) – As described in an indenture agreement dated August 1, 2010, Revenue Bonds, Series 2010A/B were issued through Alameda Public Financing Authority on behalf of AMP to provide funds, together with certain other available monies, to 1) prepay the obligations of AMP for the Electric System Revenue Certificates of Participation Series 2000A, 2) prepay the obligations of AMP for the Taxable Electric System Revenue Certificates of Participation, Series 2000AT, 3) fund a deposit to the Common Reserve Account, and 4) prepay the costs of issuance of the 2010 Bonds. Revenue Bonds, Series 2010A bear interest at 4.375 percent to 5.25 percent, payable January 1 and July 1 of each year. The Revenue Bonds, Series 2010B bear interest at 1.829 percent to 6.517 percent, payable January 1 and July 1 of each year.
Principal on the Series 2010B Bonds will be payable beginning July 1, 2011 and each succeeding July 1 until final maturity in 2027. Principal on the Series 2010A Bonds will be payable beginning July 1, 2027 and each succeeding July 1 until final maturity in 2030. The 2010 Bonds are subject to optional and mandatory sinking fund redemption prior to maturity. The 2010 Bonds are special obligations payable solely from electric revenues, other amounts held in the bond funds and accounts established pursuant to the indenture, and amounts on deposit in the Common Reserve Account. The initial book-entry principal obligation for the Series 2010A and Series 2010B bonds was $8,700,000 and $22,985,000, respectively.
AMP does not have unused line of credits for the year ended June 30, 2020.
AGENDA ITEM NO.: 4.F MEETING DATE: 03/15/2021 EXHIBIT D
AMP’s outstanding revenue bonds (Series 2010A) and Taxable Revenue Bonds (Series 2010B) are secured solely by a pledge of net revenues of AMP. Both revenue bonds contain a rate covenant that AMP will at all times fix, prescribe and collect rates, fees and charges for the services and facilities of AMP during each fiscal year that will be at least sufficient to yield:
Adjusted Annual Revenues for such fiscal year at least equal to the sum of the following for such fiscal year: a. Operating and Maintenance Cost. b. Adjusted Annual Debt Service. c. All other payments required to meet any other obligations of AMP which are charges, liens and encumbrances upon or payable from the Electric System Revenue Fund, including all amounts owed to any issuer of a Qualified Reserve Fund Credit Instrument then in effect and deposited in the Common Reserve Account under the terms of such Qualified Reserve Fund Credit Instrument and all amounts owing under subordinate debt, and Adjusted Annual Net Revenues for such fiscal year equal to at least 110% of Adjusted Annual Debt Service for such fiscal year.
If any event of default shall occur, then, and in each and every such case during the continuance of such event of default, the trustee may, and shall at the written direction of the owners of not less than a majority in aggregate principal amount of the bonds at the time outstanding, upon notice in writing to Alameda Municipal Power, declare the principal of all of the bonds then outstanding, and the interest accrued thereon, to be due and payable immediately, and upon any such declaration the same shall become and shall be immediately due and payable, anything in the indenture or in the bonds contained to the contrary notwithstanding.
C. Debt Service Requirements
Annual debt service requirements for AMP’s revenue bonds, loan from City of Alameda and capital leases are as follows:
For the Year Ending June 30 Principal Interest Total 2021 $ 1,410,000 $ 1,174,820 $ 2,584,820 2022 1,485,000 1,097,090 2,582,090 2023 1,600,000 1,004,540 2,604,540 2024 1,705,000 896,847 2,601,847 2025 1,815,000 782,148 2,597,148 2026 - 2030 10,905,000 2,078,863 12,983,863 2031 2,535,000 60,206 2,595,206
Total $ 21,455,000 $ 7,094,514 $ 28,549,514
Note 5 - Transactions with the City of Alameda
Effective July 1, 2017, and each year thereafter, the City Charter states that AMP shall annually transfer to the City, the amount of $3,700,000 plus an adjustment for inflation, minus any deduction for the amount of any exemptions granted by the AMP Board pursuant to Article XII, Section 12-6, subdivision (d) of the City Charter, in twelve equal monthly installments. As of June 30, 2020 and 2019, $4,029,765 and $3,818,400 was transferred to the City’s General Fund. AGENDA ITEM NO.: 4.F MEETING DATE: 03/15/2021 EXHIBIT D
Alameda Municipal Code provides that AMP pays the City an annual amount equal to one percent of the net book value of AMP's utility plant in service at the previous fiscal year end. AMP paid $1,505,000 and $1,474,996 in lieu of taxes to the City during the fiscal years ended June 30, 2020 and 2019, respectively.
Disbursements by AMP to the City for services provided by the City for the years ended June 30, 2020 and 2019 were $3,822,305 and $4,827,103, respectively. Utility taxes collected by AMP and remitted to the City’s General Fund for the years ended June 30, 2020 and 2019 were $4,055,630 and $3,860,379, respectively. Amounts payable to the City as of June 30, 2020 and 2019 were $352,692 and $300,508, respectively.
Billings of electricity to the City for the years ended June 30, 2020 and 2019 were $2,092,552 and $2,087,045, respectively.
Note 6 - Defined Benefit Plan
A. CalPERS Miscellaneous Employees Plan
Plan Description – Substantially all City employees including AMP employees are eligible to participate in the City’s Miscellaneous Plan offered by California Public Employees Retirement System (CalPERS) an agent multiple employer defined benefit pension plan which acts as a common investment and administrative agent for its participating member employers. CalPERS provides retirement and disability benefits, annual cost of living adjustments and death benefits to plan members, who must be public employees and beneficiaries. AMP only has miscellaneous employees that participate in the City of Alameda’s separate Miscellaneous Employee Plan (all employees excluding Police and Fire). The City allocates a portion of the net pension liability, net pension expense, and related deferred inflows and outflows of resources to AMP on a cost-sharing basis. Benefit provisions under the Plan is established by State statute and City resolution. Benefits are based on years of credited service, equal to one year of full-time employment. Funding contributions for the Plan are determined annually on an actuarial basis as of June 30 by CalPERS; the City must contribute these amounts. CalPERS issues publicly available reports that include a full description of the pension plans regarding benefit provisions, assumptions and membership information can be found on the CalPERS website.
Benefits Provided – CalPERS provides retirement and disability benefits, annual cost of living adjustments and death benefits to plan members, who must be public employees and beneficiaries. Benefits are based on years of credited service, equal to one year of full-time employment. Members with five years of total service are eligible to retire at age 50 with statutorily reduced benefits. All members are eligible for non-duty disability benefits after 10 years of service. The death benefit is one of the following; the Basic Death Benefit, the 1957 Survivor Benefit, or the Optional Settlement 2W Death Benefit. The cost of living adjustments for each plan are applied as specified by the Public Employees’ Retirement Law.
AGENDA ITEM NO.: 4.F MEETING DATE: 03/15/2021 EXHIBIT D
The Plans’ provisions and benefits in effect at June 30, 2020 and 2019, are summarized as follows:
Classic PEPRA . Prior to On or after Hire Date January 1, 2013 January 1, 2013 Formula 2% @ 55 2% @ 62 Benefit vesting schedule 5 years of service 5 years of service Benefit payments monthly for life monthly for life Retirement age 50-63 52-67 Monthly benefits, as a % of annual salary 1.426% to 2.418% 1.0% to 2.5%
Contributions – Section 20814(c) of the California Public Employees’ Retirement law requires that the employer contribution rates for all public employers are determined on an annual basis by the actuary and shall be effective on the July 1 following notice of a change in rate. Funding contributions for the Plan are determined annually on an actuarial basis as of June 30 by CalPERS. The actuarially determined rate is the estimated amount necessary to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. AMP is required to contribute the difference between the actuarially determined rate and the contribution rates of employees. Employer contribution rates for the fiscal years ended June 30, 2020 and 2019 were 29.974 percent and 26.579 percent, respectively.
Employee contribution rates for the fiscal years ended June 30, 2020 and 2019 were 8.868 and 6.957 percent for the Classic Plan Members and 7.25 and 6.75 percent for the PEPRA Plan members. AMP’s proportionate share of the City’s contributions to the miscellaneous plan was $2,504,271 and $2,105,125 for the years ended June 30, 2020 and 2019, respectively.
B. Pension Liability, Pension Expense and Deferred Outflows/Inflows of Resources Related to Pensions
As of June 30, 2020, and 2019, AMP reported a net pension liability of $26,437,127 and $24,012,403, respectively for its proportionate share of the City’s net pension liability.
The net pension liability of the Plan was measured as of June 30, 2019 and 2018, and the total pension liability for the Plan used to calculate the net pension liability was determined by an actuarial valuation as of June 30, 2018 and 2017. AMP’s proportion of the City’s net pension liability was based on AMP’s FY 2019 contributions to the City’s pension plan relative to the total contributions of the City as a whole. AMP’s proportionate share of the City’s net pension liability for the Plan as of the June 30, 2019 and 2018 measurement dates was 31.99 percent and 30.26 percent, respectively.
AGENDA ITEM NO.: 4.F MEETING DATE: 03/15/2021 EXHIBIT D
For the years ended June 30, 2020 and 2019, AMP recognized pension expense of $5,120,118 and $4,510,497, respectively. At June 30, 2020 and 2019, AMP reported deferred outflows of resources and deferred inflows of resources related to pension from the following sources:
2020 Deferred Deferred Outflows of Inflows of Resources Resources Employer contributions paid by AMP subsequent to measurement date $ 2,504,271 $ - Changes in assumptions - (50,309) Differences between expected and actual experience 162,017 (9,743) Net differences between projected and actual earnings on pension plan investments - (500,470) Total $ 2,666,288 $ (560,522)
2019 Deferred Deferred Outflows of Inflows of Resources Resources Employer contributions paid by AMP subsequent to measurement date $ 2,105,125 $ - Changes in assumptions 442,686 (302,358) Differences between expected and actual experience 7,922 (58,555) Net differences between projected and actual earnings on pension plan investments 102,068 - Total $ 2,657,801 $ (360,913)
The amount of 2,504,271 reported as deferred outflows of resources related to pensions, resulting from AMP’s contributions to the City’s pension plan subsequent to the measurement date, will be recognized as a reduction of the net pension liability in the year ended June 30, 2021. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized as pension expense as follows:
2020 2019 Year ended Year ended June 30, June 30,
2021 $ 287,413 2020 $ 929,961 2022 (607,646) 2021 98,733 2023 (136,416) 2022 (664,124) 2024 58,144 2023 (172,807)
Total $ (398,505) Total $ 191,763
AGENDA ITEM NO.: 4.F MEETING DATE: 03/15/2021 EXHIBIT D
Actuarial Assumptions – AMP’s proportion of the City’s total miscellaneous plan pension liability in the June 30, 2018 and 2017, actuarial valuation was determined using the following actuarial assumptions:
Valuation Date June 30, 2018 June 30, 2017
Actuarial Cost Method Entry-Age Normal Cost Method Actuarial Assumptions: Investment Rate 7.15% 7.15% Discount Rate 7.15% 7.15% Inflation 2.50% 2.50% Payroll Growth 3.0% 3.0% Projected Salary Increase 0.4% - 8.5% (1) 0.4% - 8.5% (1) Mortality Society of Actuaries Scale BB (2)
(1) Depending on age, service and type of employment (2) The mortality table used was developed based on CalPERS' specific data.
The underlying mortality assumptions and all other actuarial assumptions used in the June 30, 2017 valuation were based on the results of an actuarial experience study for the period of 1997 to 2015. Further details of the Experience Study can be found on the CalPERS website at: www.calpers.ca.gov under Forms and Publications.
The long-term expected rate of return on pension plan investments was determined using a building-block method in which best-estimate ranges of expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class.
In determining the long-term expected rate of return, staff took into account both short-term and long-term market return expectations as well as the expected pension fund (Public Employees’ Retirement Fund) cash flows. Such cash flows were developed assuming that both members and employers will make their required contributions on time and as scheduled in all future years. Using historical returns of all the funds’ asset classes, expected compound (Geometric) returns were calculated over the short-term (first 10 years) and the long-term (11-60 years) using a building-block approach. Using the expected nominal returns for both short-term and long-term, the present value of benefits was calculated for each fund. The expected rate of return was set by calculating the single equivalent expected return that arrived at the same present value of benefits for cash flows as the one calculated using both short-term and long-term returns. The expected rate of return was then set equivalent to the single equivalent rate calculated above and rounded down to the nearest one quarter of one percent.
AGENDA ITEM NO.: 4.F MEETING DATE: 03/15/2021 EXHIBIT D
The tables below reflect long-term expected real rate of return by asset class. The rate of return is calculated using the capital market assumptions applied to determine the discount rate and asset allocation.
2020 Target Real Return Real Return Asset Class (1) Allocation Years 1 - 10 (2) Years 11+ (3)
Global Equity 50.0% 4.80% 5.98% Fixed Income 28.0% 1.00% 2.62% Inflation Assets 0.0% 0.77% 1.81% Private Equity 8.0% 6.30% 7.23% Real Assets 13.0% 3.75% 4.93% Liquidity 1.0% 0.00% -0.92%
Total 100.0%
2019
Target Real Return Real Return Asset Class (1) Allocation Years 1 - 10 (2) Years 11+ (3)
Global Equity 50.0% 4.80% 5.98% Fixed Income 28.0% 1.00% 2.62% Inflation Assets 0.0% 0.77% 1.81% Private Equity 8.0% 6.30% 7.23% Real Assets 13.0% 3.75% 4.93% Liquidity 1.0% 0.00% -0.92%
Total 100.0%
(1) In the CalPERS CAFR, Fixed Income is included in Global Debt Securities; Liquidity is included in Short- term Investments; Inflation Assets are included in both Global Equity Securities and Global Debt Securities. (2) An expected inflation of 2.00% used for this period. (3) An expected inflation of 2.92% used for this period.
Discount Rate – The discount rate used to measure the total pension liability was 7.15 percent and 7.15 percent for the Plan as of the measurement date of June 30, 2019 and 2018, respectively. The projection of cash flows used to determine the discount rate assumed that employee contributions will be made at the current contribution rate and that AMP’s contributions will be made at rates equal to the difference between actuarially determined contributions rates and the employee rate. Based on those assumptions, the pension plan’s fiduciary net position was projected to be available to make all projected future benefit payments of current active and inactive employees. Therefore, the long-term expected rate of return on pension plan investments was applied to all period of projected benefit payments to determine the total pension liability.
AGENDA ITEM NO.: 4.F MEETING DATE: 03/15/2021 EXHIBIT D
Sensitivity of AMP’s proportionate share of the City’s Miscellaneous Plan Net Pension Liability to Changes in the Discount Rate – The following presents AMP’s proportionate share of the City’s Miscellaneous Plan net pension liability, calculated using the discount rate of 7.15 percent and 7.15 percent for the Plan, as well as what AMP’s proportionate share of the City’s Miscellaneous Plan net pension liability would be if it were calculated using a discount rate that is 1-percentage point lower or 1 percentage point higher than the current rate:
2020 2019 1% Decrease 6.15% 6.15% Net Pension Liability $ 38,334,724 $ 34,984,982 Current Discount Rate 7.15% 7.15% Net Pension Liability $ 26,437,127 $ 24,012,403 1% Increase 8.15% 8.15% Net Pension Liability $ 16,500,871 $ 14,870,052
Pension Plan Fiduciary Net Position – Detailed information about the City’s Miscellaneous Plan net pension liability is available in the City’s separately issued Comprehensive Annual Financial Report (CAFR). The City’s financial statements may be obtained by contacting the City of Alameda’s Finance Department. That report may be obtained on the internet at alamedaca.gov. Detailed information about the pension plan’s fiduciary net position is available in the separately issued CalPERS financial reports.
Note 7 - Post-employment Health Care Benefits
A. City of Alameda Other Post-Employment Benefit Plan
Plan Description – The City of Alameda provides medical and dental benefits to retirees as specified below under the City of Alameda Other Post-Employment Benefit (OPEB) Plan, a single-employer defined benefit health care plan. The City is responsible for establishing and amending the funding policy of the Plan.
The City established an irrevocable trust with Public Agency Retirement Services (PARS) to fund its retiree health benefits. Contributions to the trust are made annually according to the City’s OPEB funding policy.
The City is the Plan administrator, while PARS administers the investment trust. The City’s OPEB Plan does not issue separate financial statements. PARS issues a separate annual financial report and copies of the report may be obtained by writing to PARS at 4350 Von Karman Ave., Suite 100, Newport Beach, California, 92660.
Benefits provided – The following is a summary of Plan eligibility requirements and benefits by employee group as of June 30, 2020:
Eligibility requires retiring from the City under CalPERS typically on or after age 50 (52 for PEPRA employees) with at least 5 years of CalPERS service or disability retirement.
The City’s contribution for medical coverage for Miscellaneous employees is the Public Employees’ Medical and Hospital Care Act (PEMHCA) minimum required contribution (MRC) - $133 per month in 2018. AGENDA ITEM NO.: 4.F MEETING DATE: 03/15/2021 EXHIBIT D
As of June 30, 2020 and 2019, the total amount of benefits paid by AMP were $87,050 and $77,410 respectively.
B. OPEB Liability, OPEB Expense and Deferred Outflows/Inflows of Resources Related to OPEB
As of June 30, 2020, and 2019, AMP reported a net OPEB liability of $1,584,849 and $1,495,574 respectively for its proportionate share of the City’s net OPEB liability.
The net OPEB liability of the Plan was measured as of June 30, 2020, and the net OPEB liability for the Plan used to calculate the net OPEB liability was determined by an actuarial valuation as of June 30, 2018. AMP’s proportion of the City’s net OPEB liability was based on AMP’s FY 2019 contributions to the City’s OPEB plan relative to the total contributions of the City as a whole. AMP’s proportionate share of the City’s net OPEB liability for the Plan as of June 30, 2020 and 2019 measurement dates were 2.22 and 2.22 percent respectively.
For the years ended June 30, 2020 and 2019, AMP recognized OPEB expense of $15,497 and $694,994 respectively. At June 30, 2020 and 2019, AMP reported deferred inflows of resources related to OPEB from the following sources:
2020 Deferred Deferred Outflows Inflows of Resources of Resources Differences between expected and acturial experiences on liability $ - $ (3,924) Net differences between projected and actual earnings on plan investments 4,315 - Changes in assumptions 55,357 (35,091)
Total $ 59,672 $ (39,015)
2019 Deferred Deferred Outflows Inflows of Resources of Resources
Changes in assumptions $ - $ (83,417)
Total $ - $ (83,417)
AGENDA ITEM NO.: 4.F MEETING DATE: 03/15/2021 EXHIBIT D
Amounts reported as deferred inflows of resources related to OPEB will be recognized as OPEB expense as follows:
2020 2019 Year ended Year ended June 30, June 30,
2021 $ 17,552 2020 $ (58,809) 2022 1,285 2021 (26,793) 2023 1,367 2022 712 2024 453 2023 775
Total $ 20,657 Total $ (84,115)
Actuarial Assumptions – AMP’s proportion of the City’s net OPEB liability in the June 30, 2018 actuarial valuation was determined using the following actuarial assumptions:
Actuarial Cost Method Entry-Age Normal Cost Method, Entry-Age Normal Cost Method, level percent of pay level percent of pay Actuarial Assumptions: Valuation Date June 30, 2018 June 30, 2018 Measurement Date June 30, 2020 June 30, 2019 Discount Rate 3.64% 4.15% Inflation 2.50% 2.75% Payroll Growth 2.75%, plus merit increases 2.75%, plus merit increases Healthcare Cost Trend Rate: PPO 6.00% in 2021 and will decline to 6.50% in 2020 and will decline to 5.00% in 2023 and later years 5.00% in 2023 and later years
HMO 6.00% in 2021 and will decline to 6.50% in 2020 and will decline to 5.00% in 2023 and later years 5.00% in 2023 and later years
Mortality assumptions were based on the mortality rates under the CalPERS most recent pension experience study projected fully generational Scale MP-2014 modified to converge to ultimate rates in 2022.
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The long-term expected real rate of return by asset class. The rate of return was determined using a building- block method in which best-estimate ranges of expected future real rates of return (expected returns, net of OPEB plan investment expense and inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. Best estimates of arithmetic real rates of return for each major asset class included in the OPEB plan’s target asset allocation as of June 30, 2020 are summarized in the following table:
2020 Long-term Money- Target expected real weighted rate Asset class Allocation rate of return of return Moderate Plus
Equity 50.00% 4.25% Fixed Income 45.00% 2.25% Cash 5.00% 0.00% Total 100.00% 4.48%
2019 Long-term Money- Target expected real weighted rate Asset class Allocation rate of return of return Moderate Plus
Equity 50.00% 4.25% 5.93% Fixed Income 45.00% 2.25% 7.12% Cash 5.00% 0.00% 2.14% Total 100.00% 6.96%
Discount rate – The discount rate used to measure the net OPEB liability was 3.64 percent, based on a blended of asset expected rate of return and 3.15 percent, using the average of 3 different 20 year municipal bond rate indices: S&P Municipal Bond 20 Year High Grade Rate Index, Bond Buyer 20-Bond GO Index, Fidelity GO AA 20 Year Bond Index.
Change in assumptions – For the measurement date of June 30, 2020, the discount rate decreased from 4.15% to 3.64%. The inflation rate was reduced from 2.75% to 2.50%. The Healthcare Cost Trend Rate was reduced from 6.50 to 6.00%.
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Sensitivity of AMP’s proportionate share of the City’s Net OPEB Liability to Changes in the Discount Rate – The following presents AMP’s proportionate share of the City’s net OPEB liability, calculated using the discount rate of 3.64 percent for the Plan, as well as what AMP’s proportionate share of the City’s net OPEB liability would be if it were calculated using a discount rate that is 1-percentage point lower or 1-percentage point higher than the current rate:
2020 1% Decrease Discount Rate 1% Increase (2.64%) (3.64%) (4.64%)
Net OPEB Liability $ 1,842,621 $ 1,584,849 $ 1,377,245
2019 1% Decrease Discount Rate 1% Increase (3.15%) (4.15%) (5.15%)
Net OPEB Liability $ 1,731,216 $ 1,495,574 $ 1,307,843
Sensitivity of AMP’s proportionate share of the City’s Net OPEB Liability to Changes in the Healthcare Cost Trend Rate – The following presents AMP’s proportionate share of the City’s net OPEB liability, calculated using the healthcare cost trend rate of 6.00 (2020)/6.50 (2019) percent for the Plan, as well as what AMP’s proportionate share of the City’s net OPEB liability would be if it were calculated using a healthcare cost trend rate that is 1-percentage point lower or 1-percentage point higher than the current rate:
2020 (5.00% HMO/5.00% PPO (6.00% HMO/6.00% PPO (7.00% HMO/7.00% PPO decreasing to 4.00% decreasing to 5.00% decreasing to 6.00% HMO/4.00% PPO) HMO/5.00% PPO) HMO/6.00% PPO)
Total OPEB Liability $ 1,350,726 $ 1,584,849 $ 1,874,111
2019 (5.50% HMO/5.50% PPO (6.50% HMO/6.50% PPO (7.50% HMO/7.50% PPO decreasing to 4.00% decreasing to 5.00% decreasing to 6.00% HMO/4.00% PPO) HMO/5.00% PPO) HMO/6.00% PPO)
Total OPEB Liability $ 1,295,526 $ 1,495,574 $ 1,744,001
AGENDA ITEM NO.: 4.F MEETING DATE: 03/15/2021 EXHIBIT D
Note 8 - Northern California Power Agency (NCPA)
A. General
AMP participates in joint ventures through Joint Powers Authorities (JPAs) established under the Joint Exercise of Powers Act of the State of California. As separate legal entities, these JPAs exercise full powers and authorities within the scope of the related Joint Powers Agreement, including the preparation of annual budgets, accountability for all funds, the power to make and execute contracts and the right to sue and be sued. Obligations and liabilities of the JPAs are not those of AMP and the other participating entities unless assumed by them.
Each JPA is governed by a board consisting of representatives from each member agency. Each board controls the operations of its respective JPA, including selection of management and approval of operating budgets, independent of any influence by member agencies beyond their representation on the board.
The JPAs are discussed in this note and in Note 9.
AMP is a member of NCPA, a joint powers agency which operates under a joint powers agreement among fourteen (14) public agencies (AMP, BART, Biggs, Gridley, Healdsburg, Lompoc, Palo Alto, Ukiah, Lodi, Port of Oakland, Redding, Roseville, Silicon Valley Power, Truckee-Donner PUD). Turlock Irrigation District withdrew from NCPA on April 1, 2011. The purpose of NCPA is to use the combined strength of its members to purchase, generate, sell and interchange electric energy and capacity through the acquisition and use of electrical generation and transmission facilities, as well as to optimize the use of those facilities and the member's position in the industry. Each agency member has agreed to fund a pro rata share of certain assessments by NCPA and certain members have entered into take-or-pay power supply contracts with NCPA. While NCPA is governed by its members, none of its obligations are those of its members unless expressly assumed by them.
Amounts paid by AMP, net of refunds, to NCPA during the fiscal years ending June 30, 2020 and 2019 for purchased power were $32,246,283 and $29,586,832 respectively. Additionally, purchased power was reduced by a refund of $310,155 and $753,011 for power exchange distribution and budget settlement monies returned to the NCPA General Operating Reserve (GOR), for the fiscal years ended June 30, 2020 and 2019, respectively.
AMP receives no income from NCPA and does not participate in all of its projects. Further, NCPA does not measure or determine AMP's equity in NCPA as a whole. NCPA reports only AMP's share of its General Operating Reserve, comprised of cash and investments, and AMP's share of those projects in which AMP is a participant. These amounts are reflected in the financial statements as Investment in Joint Venture - Share of Certain NCPA Projects and Reserve.
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The changes in AMP’s share in NCPA projects and reserve are set forth below:
June 30, 2020 2019
Beginning balance $ 10,673,031 $ 9,670,766 Increase (decrease) in equity in NCPA projects (100,980) 1,002,265
Ending balance $ 10,572,051 $ 10,673,031
AMP's interest in NCPA Projects and Reserve, as computed by NCPA, is set forth below:
June 30, 2020 2019
General Operating Reserve $ 5,915,771 $ 5,485,842 Purchased Power & Transmission 1,108 1,376 Share of Scheduling Coordination Balancing Account 2,313,058 2,095,189 Share of Congestion Revenue Rights (CRR) 194,615 199,877 Associated Member Services 107,492 108,789 Market Purchase Program (MPP) Security Deposit 25,536 34,315
8,557,580 7,925,388 Net book value of amounts contributed to fund Alameda Municipal Power's share of NCPA Power: Geothermal Projects/Power Line 1,397,005 1,681,550 Calaveras Hydroelectric Project 697,574 1,368,154 Combustion Turbine Project No. 1 (156,236) (382,417) Combustion Turbine Project No. 2 76,128 80,356
$ 10,572,051 $ 10,673,031
The General Operating Reserve represents AMP's portion of funds which resulted from the settlement in prior years of issues with financial consequences and reconciliations of several prior years' budgets for programs. These funds are available on demand and earn interest.
Members of NCPA may participate in an individual project of NCPA without obligation for any other project. Member assessments collected for one project may not be used to finance other projects of NCPA without the member's permission.
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B. Projects in which AMP is a Participant
Geothermal Projects – A power purchase agreement with NCPA obligates AMP for 18.31469 percent of the debt service and the operating costs for two geothermal steam powered generating plants, Plant Number 1 and Plant Number 2, located in the Geysers area in Northern California. In conjunction with these payments, AMP is entitled to receive 16.8825 percent of the output from these facilities. NCPA continues to pursue alternatives for improving and extending steam field reservoir performance, including supplemental water reinjection, plant equipment modifications, and changes in operating methodology. NCPA has increased steam production in the vicinity of reinjection wells and has evaluated a number of alternatives to increase water reinjection at strategic locations.
Calaveras Hydroelectric Project – NCPA contracted to finance, manage, construct, and operate Hydroelectric Project Number One for the licensed owner, Calaveras County Water District. In exchange, NCPA has the right to the electric output of the project for 50 years starting in February 1982 and also has an option to purchase power from the project in excess of the District's requirements for the subsequent 50 years, subject to regulatory approval. Debt service payments to NCPA began in February 1990 when the project was declared substantially complete and power was delivered to the participants. AMP is entitled to receive 10.0 percent of output from facility. The debt obligation increased to 11.582% as other members have opted out and a reallocation was done for the remaining members.
Combustion Turbine Project No. 1 – In October 1984, NCPA financed a five-unit, l25-megawatt combustion turbine project. The project, built in three member cities including Alameda, began full commercial operation in June 1986 and provides reserve and peaking power. During August 2010, phase two of the first amendment to the NCPA power purchase agreement finalized the transfer of ownership of two NCPA electricity generating units to the City of Roseville due to a misalignment of ISO control areas. The transfer reduced the generation output of the project to 74 MW, and increased the entitlement share to 21.82 percent. Although AMP’s project percentage share increases, its resulting generating capacity entitlement remains constant at 16.05 MW.
Combustion Turbine Project No. 2 (Steam Injected Gas Turbine Project) – AMP is a participant in NCPA's 49.8 megawatt Steam Injected Gas Turbine (STIG) project which was built under turnkey contract near the City of Lodi and declared substantially complete on April 23, 1996. In 2010, the NCPA issued 2010 Refunding Series A Bonds for $55,120,000 for the purpose of providing funds to refund all of the Refunded 1999 Bonds, to fund a deposit to the 2010 Series debt service reserve account and to pay cost of issuance of the 2010 Series A Bonds. Under the NCPA power purchase agreement, AMP is obligated to pay 25.53895 percent of the debt service and operating costs for the STIG project.
On December 20, 2019, NCPA issued Capital Facilities Revenue Bonds, 2019 Refunding Series A, in the amount of $20,450,000 with an average interest rate of 5.0% to refund $25,450,000 of outstanding Capital Facilities Revenue Bonds, 2010 Refunding Series A with an average interest rate of 5.1249%. The net proceeds were used to purchase US government securities. Those securities were deposited in an irrevocable trust with an escrow agent to provide for all future debt service payments on the old bonds. As a result, the old bonds are considered defeased. The outstanding 2010 Series A Bonds were called for redemption on February 1, 2020.
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On April 2, 2019, NCPA issued Hydroelectric Project Number One Revenue Bonds, 2019 Refunding Series A, in the amount of $39,250,000 with an average interest rate of 4.9126% to refund $52,845,000 of outstanding Hydroelectric Project Number One Revenue Bonds, 2010 Refunding Series A with an average interest rate of 4.9003%. The net proceeds were used to purchase US government securities. Those securities were deposited in an irrevocable trust with an escrow agent to provide for all future debt service payments on the old bonds. As a result, the old bonds are considered defeased.
AMP's participation in procurement of natural gas for fuel for existing and new combustion turbine units was approved in 1993. Although there is currently no additional debt financing, AMP and NCPA have committed to long-term payments for gas transmission pipeline capacity, and entered a purchase contract for natural gas. AMP is obligated to pay 19.0 percent.
As of June 30, 2020, AMP's share of long-term debt for the Geothermal, Hydroelectric and Capital Facilities Projects are set forth below:
Total AMP Final Balance Balance Current AMP's Obligation Maturity July 1, 2019 Additions Retirements June 30, 2020 Portion % $ Geothermal Project 2009A 7/1/2024$ 2,675,000 $ - $ 2,675,000 $ - $ - 16.8825% $ - 2012A 7/1/2022 4,945,000 - 1,375,000 3,570,000 1,405,000 16.8825% 602,705 2016A 7/1/2024 16,900,000 - 370,000 16,530,000 3,190,000 16.8825% 2,790,677 Total Geothermal Project 24,520,000 - 4,420,000 20,100,000 4,595,000 3,393,382 Hydroelectric Project 2008A&B 7/1/2032 85,160,000 - 1,520,000 83,640,000 2,165,000 10.0000% 8,364,000 2012A&B 7/1/2032 83,785,000 - - 83,785,000 - 10.0000% 8,378,500 2018A&B (a) 7/1/2025 70,215,000 - 10,225,000 59,990,000 10,730,000 11.5821% 6,948,102 2019A 7/1/2023 39,250,000 - 940,000 38,310,000 7,830,000 10.0000% 3,831,000 Unamortized premium 7/1/2025 16,527,991 - 2,814,535 13,713,456 - 10.0000% Total Hydroelectric Project 294,937,991 - 15,499,535 279,438,456 20,725,000 27,521,602 Capital Facilities (STIG) 2010A 8/1/2025 29,645,000 - 29,645,000 - - 19.0000% - 2019A 7/1/2025 - 20,450,000 - 20,450,000 2,575,000 19.0000% 3,885,500 Unamortized premium 419,967 2,287,769 700,505 2,007,231 - 19.0000% - Total Capital Facilities 30,064,967 22,737,769 30,345,505 22,457,231 2,575,000 3,885,500 Total Long-Term Debt $ 349,522,958 $ 22,737,769 $ 50, 265,040 $ 321,995,687 $ 27,895,000 $ 34,800,484
NCPA Geothermal (2009A & 2016A) and Hydroelectric bonds pay principal July 1. Geothermal 2012A bonds pay principal both January 1 and July 1. (a) AMP's share is 10%, the above reflects the other member opt out allocation %. NCPA Capital Facilities bond pay principal August 1.
Defeased Debt - Various bond refundings were undertaken to defease debt and realize future debt service savings. Debt was defeased by using the proceeds of the refunding issues and other available monies to irrevocably place in trust cash and US Gov’t securities, which together with interest earned thereon, will be sufficient to pay both the interest and the appropriate maturity or redemption value of the refunded bonds as required.
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Graeagle Hydroelectric Project – AMP's participation in this small hydroelectric project was approved in 1993. Although this project does not involve any financing, it does involve a long-term contractual commitment to purchase the power produced by the project. AMP receives 100 percent of the power output from this small 440 kilowatt hydroelectric project.
Western Area Power Administration – AMP has an allocation of power from the Federal Central Valley Project generating resources contracted through the U.S. Department of Energy's Western Area Power Administration. This allocation has been temporarily assigned to NCPA for scheduling and delivery to AMP. AMP pays 1.08075 percent of the base resource costs and receives that same amount of the base resource, power generated in one federal fiscal year.
Other Power Purchase Agreements – AMP has also entered into a number of other power purchase agreements which are scheduled by or through NCPA.
Highwinds Project Power Purchase In December 2004, AMP entered into a long-term power purchase agreement with PPM Energy, Inc. for power supplied by the Highwinds Project in Solano County, California. In 2008, Iberdrola Renewables succeeded PPM Energy as the seller counterparty for this power purchase agreement. AMP receives 6.17 percent of the output of the 162 megawatt project (nameplate rating) – 10 megawatts – as delivered through June 30, 2028.
Landfill Gas Projects Power Purchase Since 2004, AMP has entered into four long-term power purchase agreements for power supplied by multiple generating facilities. These facilities utilize combustible gaseous emissions from landfills, located in or near the San Francisco Bay area to create power. AMP began receiving nearly 3.45 megawatts of base-load power from each of the first two facilities in 2004 and early 2006. An additional 5.2 megawatts of base-load output were added to AMP's portfolio in April 2009 when the Ox Mountain facility commenced operation. An additional 1.9 megawatts of power were added to AMP's portfolio as the Keller Canyon facility commenced base-load operation in August 2009.
California Electric Industry Restructuring – In September 1996, the California State legislature signed into law Assembly Bill 1890 (AB 1890) deregulating the electric power supply market and restructuring the electric power industry in California. While the majority of the legislation was directed at investor-owned utilities (IOUs), AMP and other California publicly owned utilities were greatly affected by the restructuring of markets and the ensuing wild fluctuations in prices that resulted from a deficiency in generating capacity and an immature and flawed market structure. Because AMP has its own generating resources and is not heavily dependent on the wholesale market to purchase power, it was not significantly impacted by these price swings.
In April 2008, the California Independent System Operator (CAISO) launched a new wholesale market structure in the state which is referred to as the Market Redesign and Technology Upgrade (MRTU).
While MRTU features a day-ahead energy market with a nodal locational marginal price calculation, both load and resources are currently priced as aggregated pricing. The MRTU initiative has introduced new risks and uncertainties for AMP because the Federal Energy Regulatory Commission (FERC) continues requiring CAISO to implement a disaggregated market that will negatively affect AMP because it is in a transmission constrained location. To establish the extent of the risk and identify its impact to rates, AMP continues to monitor changes that CAISO makes to its market structure and operations. AGENDA ITEM NO.: 4.F MEETING DATE: 03/15/2021 EXHIBIT D
NCPA plays an active role in protecting members' contractual rights in Federal Energy Regulatory Commission (FERC), California Public Utilities Commission (CPUC), and other legislative/regulatory proceedings. Priorities related to industry restructuring include the preservation of local control authority for publicly owned utilities, assuring open and fair access to wholesale markets and the transmission grid, and maintaining members' preference access to power from the Central Valley Project and Western Area Power Administration.
NCPA Financial Information – NCPA's financial statements can be obtained from NCPA, 651 Commerce Drive, Roseville, California 95678.
Note 9 - Transmission Agency of Northern California (TANC)
AMP is a member of a joint powers agreement with fifteen other entities in TANC. TANC's purpose is to provide electrical transmission or other facilities for the use of its members. While governed by its members, none of TANC's obligations are those of its members unless expressly assumed by them. The California-Oregon Transmission Project (COTP) is one of three high voltage transmission lines connecting Oregon and California. The 500 kV line is able to transmit 1,600 MW/h of electricity. The COTP participants include the Transmission Agency of Northern California, Western, PG&E, City of Redding, Carmichael Water District, and the San Juan Water District. Currently, the COTP provides a transmission path for resources that is outside of the CAISO balancing authority. According to the 1985 Project Agreement with TANC for the development of the COTP and subsequent related project agreements, AMP is obligated to pay its share of the project's costs, including debt service and is entitled to the use of a percentage of the project's transmission or transfer capacity.
AMP’s entitlement share on COTP is 1.2274 percent and AMP is obligated to pay 1.33 percent of the project’s operating costs.
AMP is obligated to pay 1.33 percent of TANC's debt-service related to the California – Oregon Transmission Project (COTP). AMP’s share on the 2009 Series A bonds is 1.4496 percent. AMP is not obligated for any portion of the 2009 Series B bonds.
These obligations provide AMP with a COTP transfer capability of 17.05 MW. AMP is also obligated to pay for a portion of the debt associated with the South of Tesla transmission which is provided under an agreement between TANC and Pacific Gas & Electric Company.
In May 2009, TANC issued $67.0 million of tax-exempt 2009 Series A bonds and $61.8 million of taxable 2009 Series B bonds. The proceeds of the Series A bonds were used to retire a bank loan that refinanced $30.3 million of TANC's tax-exempt commercial paper and also to refund $34.7 million of TANC's 2003 Series C Auction Rate Securities. The proceeds of the Series B bonds were used to retire a bank loan that refinanced $56.3 million of TANC's taxable commercial paper. The 2009 refunding increased future aggregate debt service payments by $19.3 million, but resulted in a total economic gain of $6.5 million, the difference between present value of the old and new debt service payments. TANC has issued Revenue Bonds for $435,790,000 and eliminated its obligations for the Tax Exempt Commercial Paper notes. As of June 30, 2020 and 2019, AMP's share of this debt is $0 and $0, respectively.
AGENDA ITEM NO.: 4.F MEETING DATE: 03/15/2021 EXHIBIT D
As of July 1, 2014, AMP and other NCPA members executed a multiparty Long-Term Layoff Agreement (the Agreement) that laid off their participating percentage share of the COTP to other TANC participants namely the Sacramento Municipal Utility District, the Turlock Irrigation District, and Modesto Irrigation District, for twenty- five (25) years with the option to extend for an additional five years upon all parties approval. During the layoff period AMP and other NCPA members will not pay any debt service or operating costs. During the term of the Agreement, AMP would relinquish its voting rights on all short-term decisions and actions at TANC related to the COTP.
In 2016, TANC issued $173.9 mission of tax-exempt 2016 Series A Revenue Refunding Bonds. The proceeds of the bonds were used to refund the certain outstanding bonds issued by TANC to finance or refinance a portion of the costs of the California – Oregon Transmission Project, fund the costs of terminating in full certain interest rate swap agreements relating to the variable rate Refunded Bonds, and fund a debt service reserve account for the 2016A bonds, and pay costs of the issuance of the 2016A Bonds. The 2016 Series A “small member” debt portion is $2,576,451. AMP is obligated to pay $54,209, or 2.104 percent of that debt.
TANC Financial Information - TANC's financial statements can be obtained from TANC, P.O. Box 15129, Sacramento, California 95851 or from their website at http://www.tanc.us/financials.html.
Note 10 - Risk Management
AMP, as a department of the City, participates in the City's risk management program. The City manages risk by participating in two public entity risk excess pools described below and by retaining certain risks.
Public entity risk pools are formally organized and separate entities established under the Joint Exercise of Powers Act of the State of California. As separate legal entities, those entities exercise full powers and authorities within the scope of the related Joint Powers Agreements including the preparation of annual budgets, accountability for all funds, the power to make and execute contracts and the right to sue and be sued. Each risk pool is governed by a board consisting of representatives from member municipalities. Each board controls the operations of the respective risk pool, including selection of management and approval of operating budgets, independent of any influence by member municipalities beyond their representation on that board. Obligations and liabilities of these risk pools are not AMP's or the City's responsibility.
AMP has not reduced its risk pool insurance coverage from the prior year. Furthermore, settlements have not exceeded insurance coverage for the past three fiscal years.
A. Risk Coverage
The City is a member of the Local Agency Workers' Compensation Excess Joint Powers Authority (LAWCX) which covers workers' compensation claims up to $5,000,000 and provides additional coverage up to statutory limits. The City has a deductible or uninsured liability of up to $350,000 per claim. During the fiscal years ended June 30, 2020 and 2019, AMP contributed $116,392 and $73,202 for the coverage, respectively.
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The contributions made to each risk pool equal the ratio of their respective payrolls to the total payrolls of all entities participating in the same layer of each program, in each program year. Actual surpluses or losses are shared according to a formula developed from overall loss costs and spread to member entities on a percentage basis after a retrospective rating.
The City is also a member of the California Joint Powers Risk Management Authority (CJPRMA), an excess risk- sharing pool providing general liability, auto liability, physical vehicle damage, property and boiler and machinery insurance coverage. For the liability policies, the Authority provides $40,000,000 in coverage subject to a self-insured retention limit of $500,000. The physical vehicle damage coverage covers both owned and leased vehicles valued at $25,000 or more, subject to a $10,000 deductible. With regard to the property and boiler and machinery coverage, the Authority provides “all risk” (excluding flood and quake) replacement cost coverage subject to a $25,000 deductible.
The following types of loss risks are covered by the above authority under the terms of their respective joint- powers agreements, through commercial insurance policies, and self-insured programs as follows:
Type of Coverage Coverage Limits Excess General Liability $40,000,000 Auto - Physical damage Actual Cash Value Workers' Compensation Statutory, w/ $5,000,000 in Employer's Liability Boiler & Machinery Replacement Cost Computer Software Self-Insured Property Replacement Cost Terrorism $10,000,000
Financial statements for the workers’ compensation excess risk pool may be obtained from LAWCX, c/o Bickmore & Associates, 6371 Auburn Boulevard, Citrus Heights, California 95621. Financial statements for the liability/property excess risk pool may be obtained from CJPRMA, 3201 Doolan Drive, Suite 285, Livermore, California 94551.
B. General Liability and Workers' Compensation Claims Payable
The Governmental Accounting Standards Board (GASB) requires municipalities to record their liability for uninsured claims and to reflect the current portion of this liability as an expenditure in their financial statements. As discussed above, AMP has coverage for such claims, but it has retained the risk for the deductible or uninsured portion of these claims. The change in general liability and workers' compensation claims liability, including claims incurred but not reported as estimated by the City's independent actuary, is based on historical trend information provided by its third-party administrators and was computed as follows at June 30: AGENDA ITEM NO.: 4.F MEETING DATE: 03/15/2021 EXHIBIT D
Worker's General Compensation Liability Total Beginning Balance as of July 1, 2017 $ 649,283 $ 692,675 $ 1,341,958 Change in liability for current and prior fiscal year claims (331,774) 312,394 (19,380) Payments made on claims (70,450) (36,031) (106,481) Liability as of June 30, 2018 247,059 969,038 1,216,097 Change in liability for current and prior fiscal year claims (56,376) (68,992) (125,368) Payments made on claims (50,657) (121) (50,778) Liability as of June 30, 2019 140,026 899,925 1,039,951 Change in liability for current and prior fiscal year claims 32,101 828,699 860,800 Payments made on claims (66) (2,450) (2,516) Ending balance as of June 30, 2020 172,061 1,726,174 1,898,235 Less current portion (160,000) (35,000) (195,000) Long-term portion $ 12,061 $ 1,691,174 $ 1,703,235
Note 11 - Commitments
A. Take -or- Pay Agreements
Under the terms of its NCPA and TANC joint venture agreements, AMP is liable for a portion of the bonded indebtedness issued by these agencies under take-or-pay or similar agreements, as discussed in Notes 8 and 9. AMP's estimated share of such debt outstanding at June 30, 2020 was $42,989,664. Under certain circumstances, AMP may also be responsible for a portion of the costs of operating these entities. Under certain circumstances, such as default or bankruptcy of other participants, AMP may also be liable to pay a portion of the debt of these joint ventures on behalf of the other participants. These "step up" provisions are generally capped at a 25 percent increase.
Take-or-Pay commitments expire upon final maturity of outstanding debt for each project. Final fiscal year debt expirations are as follows:
Project Debt Expiration Entitlement Debt service % NCPA - Geothermal Project (NGP) Jul-2024 16.88250% 17.73095% NCPA - Calaveras Hydroelectric Project (NCHP) Jul-2032 10.00000% 12.51968% NCPA - Capital Facilities Project (NCFP) Jul-2026 19.00000% 19.77518%
As discussed in Note 9, as of July 1, 2014, AMP and other NCPA members executed a multiparty Long-Term Layoff Agreement that laid off their participating percentage share of the COTP to other TANC participants.
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A summary of AMP’s “Take or Pay” contracts and related projects and its contingent liability for the debt service including principal and interest payments at June 30, 2020 is as follows:
Fiscal Year NGP NCHP NCFP Total 2021 $ 717,629 $ 3,499,301 $ 608,513 $ 4,825,443 2022 835,761 3,203,071 945,013 4,983,845 2023 836,267 3,268,236 960,403 5,064,906 2024 586,381 3,739,922 966,435 5,292,738 2025 587,882 3,811,363 960,593 5,359,838 2026-2030 - 10,678,515 - 10,678,515 2031-2033 - 6,784,379 - 6,784,379 Total $ 3,563,920 $ 34,984,787 $ 4,440,957 $ 42,989,664
B. Lease Agreement with 1835 Alameda Property, LLC
In March 2016, AMP entered into a property lease agreement with the 1835 Alameda Property, LLC for warehousing/distributing space. The lease terms for the agreement started on May 1, 2016 and will expire on April 30, 2031. The base rent is $24,700 per month.
Fiscal Year
2021 $ 316,023 2022 325,504 2023 335,269 2024 345,327 2025 355,687 2026-2030 1,945,041 2031 352,163
Total $ 3,975,013
AGENDA ITEM NO.: 4.F MEETING DATE: 03/15/2021 EXHIBIT D
Required Supplementary Information June 30, 2020 Alameda Municipal Power AGENDA ITEM NO.: 4.F MEETING DATE: 03/15/2021 EXHIBIT D
Alameda Municipal Power Schedule of AMP's Proportionate Share of the City's Miscellaneous Plan Net Pension Liability Last 10 Fiscal Years*
2020 2019 2018 2017 2016 2015
AMP's proportion of the City's net pension liability 31.99% 30.26% 30.19% 29.84% 29.00% 29.00%
AMP's proportionate share of the City's net pension liability $ 26,437,127 $ 24,012,403 $ 24,557,226 $ 21,006,196 $ 16,040,814 $ 13,657,795
AMP's Covered payroll $ 8,666,657 $ 8,550,195 $ 8,094,108 $ 7,798,786 $ 7,471,121 $ 7,264,115
AMP's proportionate share of the City's net pension liability as a percentage of covered payroll 305.04% 280.84% 303.40% 269.35% 214.70% 188.02%
Miscellaneous Plan fiduciary net position as a percentage of the total pension liability 72.80% 72.90% 71.50% 72.92% 77.96% 81.01%
Measurement date: June 30, 2019 June 30, 2018 June 30, 2017 June 30, 2016 June 30, 2015 June 30, 2014
* Fiscal year 2015 was the first year of implementation, therefore, only six years are shown. AGENDA ITEM NO.: 4.F MEETING DATE: 03/15/2021 EXHIBIT D
Alameda Municipal Power Schedule of AMP’s Pension Contributions Last 10 Fiscal Years*
2020 2019 2018 2017 2016 2015
Actuarially determined contributions 2,504,271$ 2,105,125$ 1,739,297$ 1,631,011$ 1,312,978$ 1,016,782$ Contributions in relation to the actuarially determined contribution 2,504,271 2,105,125 1,739,297 1,631,011 1,312,978 1,016,782
Contribution deficiency (excess) $ - $ - $ - $ - $ - $ -
Covered payroll 8,598,246$ 8,666,657$ 8,550,195$ 8,094,108$ 7,798,786$ 7,471,121$
Contributions as a percentage of covered payroll 29.13% 24.29% 20.34% 20.15% 16.84% 13.61%
* Fiscal year 2015 was the first year of implementation, therefore, only six years are shown. AGENDA ITEM NO.: 4.F MEETING DATE: 03/15/2021 EXHIBIT D
Alameda Municipal Power Schedule of AMP’s Proportionate Share of the City’s OPEB Liability and Related Ratios Last 10 Fiscal Years*
2020 2019 2018
AMP's proportion of the City's net OPEB liability 2.22% 2.22% 1.92%
AMP's proportionate share of the City's net OPEB liability $ 1,584,849 $ 1,495,574 $ 1,495,574
AMP's Covered employee payroll $ 8,666,657 $ 8,550,195 $ 8,094,108
AMP's proportionate share of the City's net OPEB liability as a percentage of covered employee payroll 18.29% 17.49% 18.48%
Measurement date: June 30, 2020 June 30, 2019 June 30, 2018
* Fiscal year 2018 was the first year of implementation of GASB 75, therefore, only three years are shown.
AGENDA ITEM NO.: 4.F MEETING DATE: 03/15/2021 EXHIBIT D
Alameda Municipal Power Schedule of AMP's OPEB Contributions Last 10 Fiscal Years*
2020 2019 2018
AMP's proportion of the City's net OPEB liability $ 1,584,849 $ 1,495,574 $ 1,979,781
Actuarially determined contributions** 77,410 77,410 - AMP's proportionate share of the City's net OPEB liability** 77,410 77,410 -
Contribution deficiency (excess) $ - $ - $ -
Covered employee payroll $ 8,598,246 $ 8,666,657 $ 8,550,195
AMP's proportionate share of the City's net OPEB liability as a percentage of covered payroll 18% 17% 23%
Contributions as a percentage of covered employee payroll 0.90% 0.89% 0.00%
* Fiscal year 2018 was the first year of implementation of GASB 75, therefore, only three years are shown. ** The City established an irrevocable trust in fiscal year 2019, therefore, only two years are shown.
AGENDA ITEM NO.: 4.F MEETING DATE: 03/15/2021 EXHIBIT D
Statistical Section June 30, 2020 Alameda Municipal Power AGENDA ITEM NO.: 4.F MEETING DATE: 03/15/2021 EXHIBIT D
Alameda Municipal Power Statistical Section Overview
STATISTICAL SECTION
This part of the Alameda Municipal Power’s (AMP) Comprehensive Annual Financial Report presents detailed information as a context for understanding what the information in the financial statements, note disclosures, and required supplementary information says about AMP’s overall financial health. In contrast to the financial section, the statistical section information is not subject to independent audit.
Financial Trends
These schedules contain trend information to help the reader understand how AMP’s financial performance and well being have changed over time:
1. Net Position by Component 2. Changes in Net Position of Consolidated Operations 3. Changes in Net Position of Electric Operations and Telecommunication Operations
Revenue Capacity These schedules contain information to help the reader assess AMP’s revenue sources:
1. Electric Operating Revenues by Source 2. Customer Accounts 3. Pricing Changes
Debt Capacity These schedules present information to help the reader assess the affordability of AMP’s current levels of outstanding debt and AMP’s ability to issue additional debt in the future:
1. Ratio of Outstanding Debt by Type 2. Revenue Bonds/Certificates of Participation Coverage – Electric Operations 3. Certificates of Participation Coverage – Telecommunication Operations
Demographic and Economic Information These schedules offer demographic and economic indicators to help the reader understand the environment within which AMP’s financial activities take place:
1. Demographic and Economic Statistics 2. Top 10 Customers and City of Alameda Principal Employers
Operating Information These schedules contain service and infrastructure data to help the reader understand how the information in AMP’s financial report relates to the services that AMP provides and the activities it performs:
1. Operating Expenses by Function – Electric Operations 2. Operating Expenses by Function –Telecommunications Operations 3. Capital Asset Statistics by Function/Program 4. Operation Indicators 5. Days Cash on Hand – Actual and Budget
Sources Unless otherwise noted, the information in these schedules is derived from the Comprehensive Annual Financial Reports for the relevant year. AGENDA ITEM NO.: 4.F MEETING DATE: 03/15/2021 EXHIBIT D
Alameda Municipal Power Net Position by Component Last Ten Fiscal Years
Net Investment in Capital Assets Restricted Unrestricted $80,000,000
$70,000,000
$60,000,000
$50,000,000
$40,000,000
$30,000,000
$20,000,000
$10,000,000
$-
Fiscal Year Ended, 6/30/2011 6/30/2012 6/30/2013 6/30/2014 6/30/2015 6/30/2016 6/30/2017 6/30/2018 6/30/2019 6/30/2020
Net Position: Net Investment in Capital Assets $ 30,928,840 $ 29,166,859 $ 28,278,573 $ 30,357,606 $ 32,296,499 $ 32,252,428 $ 34,437,310 $ 32,661,774 $ 31,576,345 $ 30,184,887 Restricted 4,378,747 4,515,565 4,529,302 4,544,429 4,561,650 4,581,311 4,608,923 4,661,503 4,719,758 4,777,285 Unrestricted 16,111,594 14,916,203 19,774,368 27,833,516 17,235,250 23,848,220 31,259,576 29,278,601 33,134,340 35,731,238 Total Net Position $ 51,419,181 $ 48,598,627 $ 52,582,243 $ 62,735,551 $ 54,093,399 $ 60,681,959 $ 70,305,809 $ 66,601,878 $ 69,430,443 $ 70,693,410 AGENDA ITEM NO.: 4.F MEETING DATE: 03/15/2021 EXHIBIT D
Alameda Municipal Power Changes in Net Position of Consolidated Operations Last Ten Fiscal Years
Net Position Ending Balance As of June 30,
$80,000,000 $70,000,000 $60,000,000 $50,000,000 $40,000,000 $30,000,000 $20,000,000 $10,000,000 $0
Fiscal Year
Non-Operating Net Position Revenue, Fiscal Operating Operating Operating Expenses & Change in Beginning Ending Year Revenues Expenses Income Transfers Net Position Balance Balance
2011$ 50,771,700 $ 43,325,162 $ 7,446,538 $ (6,950,574) $ 495,964 $ 50,923,217 $ 51,419,181 2012$ 51,434,869 $ 47,624,263 $ 3,810,606 $ (6,631,160) $ (2,820,554) $ 51,419,181 $ 48,598,627 2013$ 56,044,239 $ 48,133,618 $ 7,910,621 $ (3,927,005) $ 3,983,616 $ 48,598,627 $ 52,582,243 2014$ 59,693,838 $ 44,283,891 $ 15,409,947 $ (5,256,639) $ 10,153,308 $ 52,582,243 $ 62,735,551 2015*$ 58,759,497 $ 45,041,333 $ 13,718,164 $ (5,452,868) $ 8,265,296 $ 45,828,103 $ 54,093,399 2016$ 62,012,528 $ 51,230,776 $ 10,781,752 $ (4,193,192) $ 6,588,560 $ 54,093,399 $ 60,681,959 2017$ 63,449,233 $ 50,432,498 $ 13,016,735 $ (3,392,887) $ 9,623,848 $ 60,681,959 $ 70,305,807 2018** $ 64,602,195 $ 54,463,482 $ 10,138,713 $ (11,840,882) $ (1,702,169) $ 68,304,047 $ 66,601,878 2019$ 67,078,362 $ 59,472,881 $ 7,605,481 $ (4,776,916) $ 2,828,565 $ 66,601,878 $ 69,430,443 2020$ 67,066,350 $ 60,324,301 $ 6,742,049 $ (5,479,082) $ 1,262,967 $ 69,430,443 $ 70,693,410
*2015 Net Position Beginning Balance was restated adopting GASB Statement No. 68 "Accounting and Financial Reporting for Pensions ". **2018 Net Position Beginning Balance was restated for the adoption of GASB Statement No. 75, Accounting and Financial Reporting for Postemployment Benefits Other Than Pensions . AGENDA ITEM NO.: 4.F MEETING DATE: 03/15/2021 EXHIBIT D
Alameda Municipal Power Changes in Net Position of Electric and Telecommunication Operations Last Ten Fiscal Years
CHANGES IN NET POSITION OF ELECTRIC OPERATIONS
Non-Operating Net Position Revenue, Expenses Fiscal Operating Operating Operating & Change in Beginning Ending Year Revenues Expenses Income Transfers Net Position Balance Balance
2011$ 50,769,687 $ 41,052,225 $ 9,717,462 $ (9,879,984) $ (162,522) $ 55,969,140 $ 55,806,618 2012$ 51,434,869 $ 46,809,706 $ 4,625,163 $ (7,619,442) $ (2,994,279) $ 55,806,618 $ 52,812,339 2013$ 56,044,239 $ 47,886,282 $ 8,157,957 $ (4,134,326) $ 4,023,631 $ 52,812,339 $ 56,835,970 2014$ 59,693,838 $ 43,768,764 $ 15,925,074 $ (7,386,926) $ 8,538,148 $ 56,835,970 $ 65,374,118 2015*$ 58,759,497 $ 44,904,062 $ 13,855,435 $ (6,028,706) $ 7,826,729 $ 48,466,670 $ 56,293,399 2016$ 62,012,528 $ 51,230,776 $ 10,781,752 $ (6,393,192) $ 4,388,560 $ 56,293,399 $ 60,681,959 2017$ 63,449,233 $ 50,432,498 $ 13,016,735 $ (3,392,885) $ 9,623,850 $ 60,681,959 $ 70,305,809 2018**$ 64,602,195 $ 54,463,482 $ 10,138,713 $ (11,840,882) $ (1,702,169) $ 68,304,047 $ 66,601,878 2019$ 67,078,362 $ 59,472,881 $ 7,605,481 $ (4,776,916) $ 2,828,565 $ 66,601,878 $ 69,430,443 2020$ 67,066,350 $ 60,324,301 $ 6,742,049 $ (5,479,082) $ 1,262,967 $ 69,430,443 $ 70,693,410 *2015 Net Position Beginning Balance was restated adopting GASB Statement No. 68 "Accounting and Financial Reporting for Pensions ". **2018 Net Position Beginning Balance was restated for the adoption of GASB Statement No. 75, Accounting and Financial Reporting for Postemployment Benefits Other Than Pensions .
CHANGES IN NET POSITION OF TELECOMMUNICATIONS OPERATIONS
Non-Operating Revenue, Expenses, Transfers Net Position Fiscal Operating Operating Operating and Special Change in Beginning Ending Year Revenues Expenses Income Items Net Position Balance Balance
2010 $ 5,003 $ 5,430,304 $ (5,425,301) $ 2,734,279 $ (2,691,022) $ (2,354,901) $ (5,045,923) 2011 $ 2,013 $ 2,272,937 $ (2,270,924) $ 2,929,410 $ 658,486 $ (5,045,923) $ (4,387,437) 2012 $ - $ 814,557 $ (814,557) $ 988,282 $ 173,725 $ (4,387,437) $ (4,213,712) 2013 $ - $ 247,336 $ (247,336) $ 207,321 $ (40,015) $ (4,213,712) $ (4,253,727) 2014 $ - $ 515,127 $ (515,127) $ 2,130,287 $ 1,615,160 $ (4,253,727) $ (2,638,567) 2015 $ - $ 137,271 $ (137,271) $ 575,838 $ 438,567 $ (2,638,567) $ (2,200,000) 2016 $ - $ - $ - $ 2,200,000 $ 2,200,000 $ (2,200,000) $ - 2017 $ - $ - $ - $ - $ - $ - $ - 2018 $ - $ - $ - $ - $ - $ - $ - 2019 $ - $ - $ - $ - $ - $ - $ - 2020 $ - $ - $ - $ - $ - $ - $ - AGENDA ITEM NO.: 4.F MEETING DATE: 03/15/2021 EXHIBIT D
Alameda Municipal Power Electric Operating Revenues by Source Last Ten Fiscal Years
Fiscal Year ELECTRIC OPERATIONS
2019
2018
2017
2016
2015
2014
2013
2012
2011
Residential Commercial Smalll Commercial Medium Municipal & Street Lighting Miscellaneous & Other GHG/C&T/LCFS Related Sales
Sales of Electricity Fiscal Commercial Commercial Street Lighting/ Miscellaneous Plant Lease & GHG/C&T/LCFS Year Residential Small Medium Municipal Other Services Jobbing Sales Related Sales Total
2011 $18,257,650 $23,352,114 $5,861,554 $1,753,399 $641,967 $613,426 $289,577 $0 $50,769,687 2012 $18,488,086 $23,964,056 $5,666,350 $1,793,977 $464,788 $687,220 $370,392 $0 $51,434,869 2013 $18,781,411 $24,967,214 $4,552,958 $1,779,313 $623,308 $666,112 $390,500 $4,283,423 $56,044,239 2014 $18,974,096 $25,554,219 $4,088,510 $1,859,914 $660,902 $773,677 $843,737 $6,938,783 $59,693,838 2015 $18,849,656 $25,660,869 $3,435,518 $2,047,549 $797,198 $742,071 $402,567 $6,824,069 $58,759,497 2016 $19,869,104 $27,071,358 $4,278,240 $1,973,689 $1,028,631 $947,765 $479,791 $6,363,950 $62,012,528 2017 $21,510,126 $27,177,335 $4,366,885 $1,958,154 $913,248 $1,275,191 $1,177,119 $5,071,175 $63,449,233 2018 $23,902,788 $28,500,186 $4,338,898 $1,965,664 $793,870 $1,146,507 $519,200 $3,435,082 $64,602,195 2019 $24,414,010 $28,354,299 $4,580,711 $2,225,142 $1,453,471 $510,524 $1,380,846 $4,159,358 $67,078,362 2020 $25,933,443 $29,341,107 $5,069,275 $2,238,296 $149,514 $362,644 $1,062,614 $2,909,457 $67,066,350
Kilowatt- Hour Sales Fiscal Commercial Commercial Street Lighting/ Total Peak Year Residential Small Medium Municipal Other KWH Demand (KWH) 2011 142,305,884 174,717,111 49,235,786 13,138,014 3,240,179 382,636,974 70,800 2012 139,665,283 172,445,087 45,512,960 12,880,649 3,283,309 373,787,288 67,188 2013 135,924,914 176,259,228 35,487,830 12,585,314 3,186,846 363,444,132 68,100 2014 131,209,422 175,075,476 31,951,900 12,537,513 3,138,994 353,913,305 69,308 2015 125,431,220 174,257,771 26,587,830 12,809,590 3,116,374 342,202,785 63,372 2016 125,831,929 176,575,883 31,490,040 12,375,517 2,546,494 348,819,863 64,283 2017 126,850,402 172,520,353 30,127,960 11,428,198 2,838,825 343,765,738 63,738 2018 124,589,523 168,873,305 28,321,180 10,723,565 2,518,330 335,025,903 59,624 2019 125,510,907 164,807,447 28,712,440 11,064,274 2,034,011 332,129,079 54,362 2020 129,591,566 166,745,235 31,301, 090 11,539,236 2,605,615 341,782,742 61,990
AGENDA ITEM NO.: 4.F MEETING DATE: 03/15/2021 EXHIBIT D
Alameda Municipal Power Customer Accounts Last Ten Fiscal Years
Customer Accounts as of June 30,
36,500 36,000 35,500 35,000 34,500 34,000 33,500 33,000 Fiscal Year 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Electric Customers Alameda Point Phone Customers Telecom Customers
Number of Electric Customer Accounts: Street Total Fiscal Commercial Commercial Lighting Customer Year Residential Small Medium Municipal & Other Accounts
2011 30,171 3,744 13 330 23 34,281 2012 30,194 3,776 12 327 29 34,338 2013 30,260 3,781 9 331 24 34,405 2014 30,293 3,786 12 363 28 34,482 2015 30,307 3,834 8 361 15 34,525 2016 30,377 3,735 8 363 11 34,494 2017 30,495 3,764 12 362 15 34,648 2018 30,625 3,778 12 363 12 34,790 2019 31,201 3,808 8 358 21 35,396 2020 31,822 3,852 8 361 24 36,067
NOTE: Telecommunication operation was sold in November 2008 - 10 year historical data is zero for 2009 onwards Telecommunications* Alameda Point Fiscal Customer Telephone Year Cable TV Internet Data Accounts Customer Accounts
2011 - - - 138 2012 - - - 135 2013 - - - 130 2014 - - - 102 2015 - - - 100 2016 - - - 88 2017 - - - 79 2018 - - - 66 2019 - - - 59 2020 - - - 58
*Telecommunication operation was sold in November 2008 AGENDA ITEM NO.: 4.F MEETING DATE: 03/15/2021 EXHIBIT D
Alameda Municipal Power Pricing Changes Last Ten Fiscal Years
Electric Rate Changes Percent Date Change
July 1, 2011 3.85% July 1, 2012 3.25% July 1, 2013 3.25% July 1, 2014 2.00% July 1, 2015 4.60% July 1, 2016 5.00% July 1, 2017 5.00% July 1, 2018 1.00% July 1, 2019 2.50% July 1, 2020 0.00% (Fiscal Year 2021) AGENDA ITEM NO.: 4.F MEETING DATE: 03/15/2021 EXHIBIT D
Alameda Municipal Power Ratio of Outstanding Debt by Type Last Ten Fiscal Years
$40,000,000
$35,000,000
$30,000,000
$25,000,000
$20,000,000
$15,000,000
$10,000,000
$5,000,000
$- 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Fiscal Year
Total Debt
Loans and Fiscal Certificates of Revenue Bonds/ Lease Total Per Customer Per Year Participation Anticipation Notes Purchases Accounts Capita (a)
2011 $ - $ 31,685,000 $ 2,447,380 $ 34,132,380 $994.01 $ 460.74 2012 $ - $ 30,790,000 $ 2,389,610 $ 33,179,610 $964.38 $ 444.53 2013 $ - $ 29,750,000 $ 2,328,405 $ 32,078,405 $930.29 $ 426.99 2014 $ - $ 28,685,000 $ 2,263,581 $ 30,948,581 $896.41 $ 405.02 2015 $ - $ 27,590,000 $ 2,200,000 $ 29,790,000 $862.85 $ 392.17 2016 $ - $ 26,460,000 $ - $ 26,460,000 $767.09 $ 333.77 2017 $ - $ 25,290,000 $ - $ 25,290,000 $726.93 $ 316.41 2018 $ - $ 24,070,000 $ - $ 24,070,000 $680.02 $ 301.15 2019 $ - $ 22,795,000 $ - $ 22,795,000 $644.00 $ 287.39 2020 $ - $ 21,455,000 $ - $ 21,455,000 $594.87 $ 263.86
Source: (a) City of Alameda (population) AGENDA ITEM NO.: 4.F MEETING DATE: 03/15/2021 EXHIBIT D
Alameda Municipal Power Revenue Bonds / Certificates of Participation Coverage – Electric Operations Last Ten Fiscal Years
ELECTRIC OPERATIONS
$16,000,000.0
$14,000,000.0
$12,000,000.0
$10,000,000.0
$8,000,000.0
$6,000,000.0
$4,000,000.0
$2,000,000.0
$0.0 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Fiscal Year
Net Revenue & Bond Refunding Debt Service
Electric GHG/C&T Electric Net Revenue Gross Related Sales Direct Available for Revenue Net Revenue Operating Debt Service, Including Not Available for Expenses Renewals, Debt Service Fiscal Non-Operating Debt Service (Excluding Replacements Interest and Year Revenue Depreciation) and Additions Principal Fiscal Charges Total Coverage
2011$ 51,396,603 $ - $ 37,590,949 $ 13,805,654 $ 54,526 $ 1,582,668 $ 1,637,194 8.43 2012$ 51,698,976 $ - $ 43,284,441 $ 8,414,535 $ 952,770 $ 1,677,854 $ 2,630,624 3.20 2013$ 57,878,814 $ 4,283,423 $ 44,964,882 $ 8,630,509 $ 1,101,205 $ 1,651,892 $ 2,753,097 3.13 2014$ 59,861,226 $ 6,938,783 $ 40,809,073 $ 12,113,370 $ 1,129,824 $ 1,617,655 $ 2,747,479 4.14 2015$ 59,022,915 $ 6,824,069 $ 41,755,514 $ 11,443,332 $ 1,158,581 $ 1,554,056 $ 2,712,637 4.22 2016$ 63,509,684 $ 6,363,950 $ 47,864,750 $ 9,280,984 $ 1,130,000 $ 1,510,325 $ 2,640,325 3.52 2017$ 65,735,599 $ 5,071,175 $ 46,926,046 $ 13,738,378 $ 1,170,000 $ 1,461,044 $ 2,631,044 5.22 2018$ 65,532,532 $ 3,435,082 $ 51,123,219 $ 10,974,231 $ 1,220,000 $ 1,406,364 $ 2,626,364 4.18 2019$ 69,044,773 $ 4,159,358 $ 55,616,579 $ 9,268,836 $ 1,275,000 $ 1,342,703 $ 2,617,703 3.54 2020$ 69,124,622 $ 2,909,457 $ 56,426,290 $ 9,788,875 $ 1,340,000 $ 1,273,787 $ 2,613,787 3.75 AGENDA ITEM NO.: 4.F MEETING DATE: 03/15/2021 EXHIBIT D
Alameda Municipal Power Certificates of Participation Coverage - Telecommunications Last Ten Fiscal Years
TELECOMMUNICATIONS OPERATIONS
$20,000,000 $18,000,000 $16,000,000 $14,000,000 $12,000,000 $10,000,000 $8,000,000 $6,000,000 $4,000,000 $2,000,000 $0 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 ($2,000,000) ($4,000,000) Fiscal Year
Net Revenue Debt Service
Net Revenue Gross Direct Available for Revenue Operating Debt Service, Including Expenses Renewals, Debt Service Fiscal Non-Operating (Excluding Replacements Interest and Year Revenue Depreciation) and Additions Principal Fiscal Charges Total Coverage
2011 $ 2,013 $ 2,272,937 $ (2,270,924) $ - $ - $ - Not Applicable 2012 $ 1,060 $ 814,557 $ (813,497) $ - $ - $ - Not Applicable 2013 $ 892 $ 247,336 $ (246,444) $ - $ - $ - Not Applicable 2014 $ 815 $ 515,127 $ (514,312) $ - $ - $ - Not Applicable 2015 $ 1,020 $ 137,271 $ (136,251) $ - $ - $ - Not Applicable 2016 $ 9,977 $ - $ 9,977 $ 2,200,000 $ - $ 2,200,000 0.00 2017 $ - $ - $ - $ - $ - $ - Not Applicable 2018 $ - $ - $ - $ - $ - $ - Not Applicable 2019 $ - $ - $ - $ - $ - $ - Not Applicable 2020 $ - $ - $ - $ - $ - $ - Not Applicable
*Telecommunication operations was sold in November 2008. Sale proceed was used to pay debt principal.
AGENDA ITEM NO.: 4.F MEETING DATE: 03/15/2021 EXHIBIT D
Alameda Municipal Power Demographic and Economic Statistics Last Ten Fiscal Years
In 000's
$4,500,000 4.90% $4,000,000 4.88% 4.86% $3,500,000 4.84% $3,000,000 4.82% $2,500,000 4.80% $2,000,000 4.78% 4.76% $1,500,000 4.74% $1,000,000 4.72% $500,000 4.70% $- 4.68%
City Population as a % of County Population Total Personal Income
$50,000 8.00% $45,000 7.00% $40,000 6.00% $35,000 $30,000 5.00% $25,000 4.00% $20,000 3.00% $15,000 2.00% $10,000 $5,000 1.00% $- 0.00%
Per Capita Personal Income Unemployment Rate %
Total Per Capita Unemployment Alameda City Fiscal City Personal Income Personal Rate County Population Year Population (In Thousands) Income % Population % of County
2011 74,081 $ 3,035,929 $ 40,981 7.4% 1,521,157 4.87% 2012 74,640 $ 2,763,776 $ 36,962 6.5% 1,532,137 4.87% 2013 75,126 $ 2,824,097 $ 37,591 6.2% 1,548,681 4.85% 2014 76,413 $ 3,406,033 $ 44,574 7.6% 1,578,891 4.84% 2015 75,961 $ 3,092,904 $ 40,717 5.1% 1,574,497 4.82% 2016 79,277 $ 3,207,096 $ 40,454 4.1% 1,627,865 4.87% 2017 79,928 $ 3,423,524 $ 42,833 3.6% 1,645,359 4.86% 2018 79,928 $ 3,529,109 $ 44,154 3.3% 1,660,202 4.81% 2019 79,316 $ 3,695,508 $ 46,592 2.8% 1,669,301 4.75% 2020 81,312 $ 3,828,228 $ 47,080 2.6% 1,670,834 4.87%
Source: City of Alameda
AGENDA ITEM NO.: 4.F MEETING DATE: 03/15/2021 EXHIBIT D
Alameda Municipal Power Top Ten Customers and City’s Principal Employers Year Ended June 30, 2020
Top 10 Customers
2020 Percent of Percent of System System No. Customer Type of Business KWHS Total Revenues Total
1 U.S. Coast Guard Regulation, Admin. of Transportation 19,497,715 9.63% $ 3,051,091 8.17% 2 City Of Alameda Local Government 8,673,012 4.28% $ 1,671,876 4.48% 3 Maritime Administration Regulation, Admin. of Transportation 6,487,408 3.21% $ 1,067,680 2.86% 4 Penumbra, Inc. Medical Devices Developer/Manufacturer 5,664,304 2.80% $ 950,001 2.54% 5 Safeway Inc. Grocery Retailer 5,488,920 2.71% $ 876,302 2.35% 6 Alameda Unified School District Public School District 5,334,073 2.64% $ 974,838 2.61% 7 G&I IX Marina Village Office Park Real Estate Management 5,027,670 2.48% $ 927,326 2.48% 8 City of San Leandro Health Care Hospital, Medical and Emergency Services 4,366,599 2.16% $ 734,483 1.97% 9 Peets Coffee & Tea Coffee Roaster and Retailer 4,295,120 2.12% $ 736,549 1.97% 10 Alameda Commercial Properties Real Estate Management 4,284,000 2.12% $ 830,168 2.22% Top 10 Customers KWHS 69,118,821 34.15%$ 11,820,314 31.65%
Total Kilowatt Hour Sales 202,405,690 100% $ 37,342,828 100%
Principal Employers Last Fiscal Year and Nine Years Ago FY2018-19 FY2009-10 Percentage Percentage No. Business Name Number of % of Total City Number of % of Total City Employees Rank Population Employees Rank Population
1 Penumbra 1,839 1 2.32% 2 Alameda Unified School District 1,025 2 1.29% 1,068 5 1.37% 3 Allegis Group Services, Inc 950 3 1.20% 7 Alameda Hospital 754 4 0.95% 492 8 0.63% 4 Oakland Raiders 694 5 0.87% 6 Abbott Diabetes Care 600 6 0.76% 5 City of Alameda 533 6 0.67% 620 6 0.80% 8 Kaiser Foundation Health Plan 425 8 0.54% 9 U.S. Department of Transportation 400 9 0.50% 10 Performance Contracting Inc 380 10 0.48% UT Starcom Inc 2,400 1 U.S. Coast Guard 2,200 2 2.83% Telecare Corp 2,100 3 Wind River Systems 1,673 4 2.15% Celera Diagnostics LLC 551 7 0.71% Bay Ship and Yacht 250 9 0.32% Bay View Nursing &Rehab Center 180 9 0.23%
Subtotal 7,600 9.58% 11,534 14.82%
Total City Day Population 79,316 77,838
Source: City of Alameda Community Development Department and City of Alameda Business License Records
AGENDA ITEM NO.: 4.F MEETING DATE: 03/15/2021 EXHIBIT D
Alameda Municipal Power Operating Expenses by Function Per FERC Codes Last Ten Fiscal Years
2,017
Fiscal Year ELECTRIC OPERATIONS
2020
2019
2018
2017
2016
2015
2014
2013
2012
2011
Purchased Power Distribution Transmission Cust Accts Payment In-Lieu of Taxes Administration Depreciation Bal Account
*Payment Jobbing Fiscal Purchased Distribution Transmission- Customer In-lieu Sales Balancing Year Power Operation Maintenance Accounts Administration of Taxes Depreciation Expenses Account Total
2011$ 25,159,235 $ 3,219,257 $ 29,744 $ 3,167,469 $ 6,164,149 $ - $ 3,461,276 $ 154,501 $ (303,406) $ 41,052,225 2012$ 25,878,402 $ 3,159,241 $ 33,852 $ 3,464,843 $ 6,476,238 $ - $ 3,525,265 $ 216,243 $ 4,055,622 $ 46,809,706 2013$ 28,544,844 $ 3,093,277 $ 6,708 $ 3,564,481 $ 7,197,031 $ - $ 2,921,400 $ 239,946 $ 2,318,595 $ 47,886,282 2014$ 28,196,783 $ 3,323,756 $ 10,326 $ 3,346,221 $ 7,110,522 $ - $ 2,959,691 $ 718,904 $ (1,897,439) $ 43,768,764 2015$ 27,517,599 $ 4,228,121 $ 2,202 $ 4,175,433 $ 6,289,604 $ - $ 3,148,548 $ 202,796 $ (660,241) $ 44,904,062 2016$ 29,781,270 $ 4,549,165 $ 2,414 $ 4,483,281 $ 7,723,065 $ - $ 3,366,025 $ 315,472 $ 1,010,084 $ 51,230,776 2017$ 28,201,607 $ 4,618,340 $ - $ 4,274,066 $ 7,412,807 $ - $ 3,506,452 $ 993,589 $ 1,425,636 $ 50,432,497 2018$ 28,618,484 $ 4,814,122 $ - $ 3,974,327 $ 10,527,575 $ - $ 3,340,263 $ 367,624 $ 2,821,087 $ 54,463,482 2019$ 29,586,832 $ 5,033,334 $ - $ 4,939,441 $ 9,954,555 $ - $ 3,856,302 $ 1,242,159 $ 4,860,258 $ 59,472,881 2020$ 32,246,283 $ 5,055,482 $ - $ 5,038,324 $ 12,261,784 $ - $ 3,898,011 $ 803,802 $ 1,020,615 $ 60,324,301
*Payment-in-lieu of taxes is included in non-operating revenues (expenses) to conform with 2010 A/B Bond operating expense definitions.
AGENDA ITEM NO.: 4.F MEETING DATE: 03/15/2021 EXHIBIT D
Alameda Municipal Power Operating Expenses by Function Per FERC Codes (Continued) Last Ten Fiscal Years
TELECOMMUNICATIONS OPERATIONS Fiscal Year
2020
2019
2018 Operations Imitated in July 2000 2017
2016
2015
2014
2013
2012
2011
Programming Operating & Maintenance Plant Support Customer & Sales Exp
Administrative and general Payment In-Lieu of Taxes Depreciation
Payment Fiscal Programming Operating & Plant Customer A/C In-lieu Year & Access Maintenance Support & Sale Expenses Administration of Taxes Depreciation Total
2011 $ - $ - $ - $ - $ 2,272,937 $ - $ - $ 2,272,937 2012 $ - $ - $ - $ - $ 814,557 $ - $ - $ 814,557 2013 $ - $ - $ - $ - $ 247,336 $ - $ - $ 247,336 2014 $ - $ - $ - $ - $ 515,127 $ - $ - $ 515,127 2015 $ - $ - $ - $ - $ 137,271 $ - $ - $ 137,271 2016 $ - $ - $ - $ - $ - $ - $ - $ - 2017 $ - $ - $ - $ - $ - $ - $ - $ - 2018 $ - $ - $ - $ - $ - $ - $ - $ - 2019 $ - $ - $ - $ - $ - $ - $ - $ - 2020 $ - $ - $ - $ - $ - $ - $ - $ -
*Telecommunication operation was sold in November 2008
AGENDA ITEM NO.: 4.F MEETING DATE: 03/15/2021 EXHIBIT D
Alameda Municipal Power Capital Asset Statistics by Function / Program Last Ten Fiscal Years
ELECTRIC OPERATIONS Net Service Less: Electric Fiscal Center Land, Rights Machinery Transportation Computer Furniture Construction Accumulated Capital Year Plant Building & Easements & Equipment Equipment Equipment & Fixtures in Progress Depreciation Assets
2011$ 70,314,925 $ 7,843,636 $ 339,144 $ 8,739,161 $ 2,593,727 $ 3,256,643 $ 599,107 $ 1,719,491 $ (56,419,296) $ 38,986,538 2012$ 71,900,364 $ 7,843,636 $ 339,143 $ 8,915,622 $ 2,738,514 $ 3,288,430 $ 606,182 $ 1,501,292 $ (59,916,840) $ 37,216,343 2013$ 73,322,303 $ 7,843,636 $ 339,143 $ 9,074,538 $ 2,738,514 $ 3,320,906 $ 629,213 $ 1,877,849 $ (62,829,423) $ 36,316,679 2014$ 79,142,909 $ 7,843,636 $ 339,143 $ 9,153,503 $ 2,867,266 $ 3,455,613 $ 829,333 $ 45,897 $ (65,426,161) $ 38,251,139 2015$ 79,286,684 $ 7,843,636 $ 339,143 $ 9,197,186 $ 3,050,605 $ 3,654,987 $ 833,207 $ 4,518,743 $ (68,536,089) $ 40,188,102 2016$ 84,548,411 $ 7,850,886 $ 339,143 $ 9,439,316 $ 3,048,241 $ 3,832,459 $ 835,790 $ 1,736,459 $ (71,425,024) $ 40,205,681 2017$ 84,654,592 $ 8,071,667 $ 339,143 $ 9,510,378 $ 3,240,418 $ 4,158,116 $ 835,790 $ 6,452,324 $ (74,534,854) $ 42,727,575 2018$ 86,123,810 $ 8,130,625 $ 339,143 $ 9,620,376 $ 3,318,156 $ 4,168,912 $ 899,922 $ 2,872,673 $ (74,267,672) $ 41,205,945 2019$ 86,915,116 $ 8,168,069 $ 220,143 $ 9,725,953 $ 3,402,639 $ 4,377,329 $ 899,922 $ 3,862,220 $ (77,856,842) $ 39,714,550 2020$ 87,421,782 $ 8,168,069 $ 220,143 $ 9,725,953 $ 3,405,737 $ 4,683,748 $ 923,119 $ 5,198,491 $ (81,362,299) $ 38,384,743 AGENDA ITEM NO.: 4.F MEETING DATE: 03/15/2021 EXHIBIT D
Alameda Municipal Power Operation Indicators Last Ten Fiscal Years
0.3 ENERGY BY SOURCE - FY 2020 26.8%
0.25
0.2 16.8% 14.9% 0.15 12.8% 11.3% 10.3% 0.1 5.3% 0.05 0.7% 0.9% 0
Energy By Source
Last Ten Fiscal Years y Power (Morgan Calaveras Western Landfill Combustion Graeagle Stanley prior Fiscal Year Other Purchases (Sales) Hydro Hydro Projects High Winds Turbines Hydro Geothermal to 2018) Total 2011 -10.27% 20.61% 9.06% 21.08% 5.62% 0.64% 0.70% 36.19% 16.37% 100.00% 2012 -3.67% 12.09% 9.96% 21.53% 4.75% 0.13% 0.67% 37.63% 16.91% 100.00% 2013 33.51% 7.03% 9.00% 16.71% 4.46% 0.15% 0.52% 11.41% 17.21% 100.00% 2014 50.61% 5.39% 6.68% 14.32% 4.71% 0.28% 0.43% 0.00% 17.58% 100.00% 2015 59.11% 4.62% 5.70% 14.74% 5.83% 0.39% 0.39% 0.00% 9.22% 100.00% 2016 63.57% 10.91% 7.05% 12.07% 5.44% 0.40% 0.55% 0.00% 0.00% 100.00% 2017 38.52% 25.67% 16.00% 12.29% 5.71% 1.03% 0.77% 0.00% 0.00% 100.00% 2018 52.13% 13.98% 10.41% 11.68% 5.54% 1.42% 0.80% 4.03% 0.00% 100.00% 2019 37.00% 24.22% 11.97% 8.52% 5.88% 1.50% 0.58% 10.32% 0.00% 100.00% 2020 21.80% 12.80% 16.40% 14.90% 5.30% 0.90% 0.70% 16.90% 10.30% 100.00% AGENDA ITEM NO.: 4.F MEETING DATE: 03/15/2021 EXHIBIT D
Alameda Municipal Power Operation Indicators (Continued) Last Ten Fiscal Years
Fiscal Year 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Since: 1887 1887 1887 1887 1887 1887 1887 1887 1887 1887 Budgeted Employees 91 91 90 94 93 98 98 97 94 92 Vehicles in Service 40 40 40 40 39 46 46 46 45 42 Service Area (Miles) 22.80 22.80 22.80 22.80 22.80 22.80 22.80 22.80 22.80 22.80 Transmission Lines (115kV) Overhead Pole Miles 6.77 6.77 6.80 6.77 6.77 6.77 6.77 6.77 6.77 6.77 Underground Circuit Miles 1.93 1.93 1.90 1.93 1.93 1.93 1.93 1.93 1.93 1.93 Distribution Lines (12kV) Overhead Pole Miles 86.11 86.08 86.10 86.08 86.10 86.08 86.08 86.10 86.10 86.10 Underground Circuit Miles 171.76 172.93 172.50 174.01 176.40 177.17 178.06 179.00 179.00 185.70 Street Lights (excluding inactivated lights) 5,584 5,593 5,315 5,372 5,441 5,470 5,470 6,415 - -
(1) Street Lights were transferred to the City of Alameda in FY2018 per Voter approval in November 2016 AGENDA ITEM NO.: 4.F MEETING DATE: 03/15/2021 EXHIBIT D
Alameda Municipal Power Days Cash on Hand Last Ten Fiscal Years
Fiscal Year Actual Budget
2011 237 215
2012 222 195
2013 213 173
2014 168 167
2015 252 214
2016 236 235
2017 206 230
2018 233 208
2019 278 197
2020 307 186 AGENDA ITEM NO.: 4.F MEETING DATE: 03/15/2021 EXHIBIT D
Bond Disclosure Section June 30, 2020 Alameda Municipal Power AGENDA ITEM NO.: 4.F MEETING DATE: 03/15/2021 EXHIBIT D
February 25, 2021
Subject: Bond Disclosure Information
We are pleased to provide bond disclosure information for Alameda Municipal Power (AMP), an enterprise fund and department of the City of Alameda, California. The information presented is for AMP’s five (5) most recent fiscal years, which includes those ended June 30, 2020, 2019, 2018, 2017, and 2016. AMP believes that the data presented here is accurate in all material respects, that the data is presented in a manner designed to set forth fairly the financial position of the organization and that all disclosures necessary to gain an understanding of the financial activity of AMP are included in this report.
This Bond Disclosure Section is provided to fulfill requirements for an Annual Financial Report, and other information, as required by the:
Continuing Disclosure Certificates for the Alameda Public Financing Authority, Revenue Bonds, Series 2010A/B (Alameda Municipal Power Refinancing).
Continuing Disclosure Certificates obligation for the Bureau of Electricity/City of Alameda with respect to the Northern California Power Agency’s revenue bonds:
Geothermal-2009 Series A due 7/1/2024 (1) Hydroelectric-2008 Refunding Series A due 7/1/2032 Hydroelectric-2008 Refunding Series B due 7/1/2021 Hydroelectric-2012 Refunding Series A due 7/1/ 2032 Hydroelectric-2012 Refunding Series B due 7/1/ 2025 Hydroelectric-2018 Refunding Series A/B due 7/1/2025 Hydroelectric-2019 Refunding Series A due 7/1/2023
Capital Facilities-2010 Refunding Series A due 8/1/2025 (2) Capital Facilities-2019 Refunding Series A due 8/1/2025
(1) Geothermal 2009 Series A call notice issued 5/29/2019 and redeemed 7/1/2019 (2) Capital Facilities 2010A refunding bonds were Defeased by the Capital Facilities 2019A bonds and redeemed February 1, 2020
AGENDA ITEM NO.: 4.F MEETING DATE: 03/15/2021 EXHIBIT D
Annual Financial Report
This Bond Disclosure Section, included within AMP’s Comprehensive Annual Financial Report (CAFR) for Fiscal Years Ended 2020 and 2019, provides the most recent information required by the Continuing Disclosure Certificates (the Certificates). The CAFR, in turn, will be filed with the appropriate Dissemination Agent(s) for transmittal to the repositories in accordance with the requirements of the Certificates. The Annual Financial Report is incorporated into the CAFR and includes by reference the audited financial statements of AMP for the prior fiscal year.
This Bond Disclosure Section incorporated into this fiscal year’s CAFR, also contains the following information required by the Certificates:
1. Updated information comparable to the information in the table entitled “City of Alameda, Alameda Municipal Power, Power Supply Resources”; 2. Updated information comparable to the information in the table entitled “City of Alameda, Alameda Municipal Power, Electric Rate Changes”; 3. Updated information comparable to the information in the table entitled “City of Alameda, Alameda Municipal Power, Electric Customers, Sales, Revenues and Demand”; and, 4. Updated information comparable to the information in the table entitled “City of Alameda, Alameda Municipal Power, Condensed Operating Results and Selected Balance Sheet Information”.
Reporting of Significant Events
As of June 30, 2020, none of the events listed in Section 5 of the Certificates have occurred for the Series 2010 A/B bonds issued by the Alameda Public Financing Authority. As of June 30, 2020, Alameda Municipal Power has no knowledge of any impending significant event that would require disclosure under the provisions of the Certificates.
Additional Information
Senate Bill (SB) 1X 2 requires that load serving entities like AMP maintain their percentage of eligible renewable power used to supply their retail end-use customers at no less than an average of 20% for the calendar years (CY) 2011 through 2015, and gradually increasing to 33 percent for 2020. In January 2016 AMP’s Public Utilities Board (Board) approved a revised RPS Policy that is consistent with that of the State for the years 2014 through 2020. Additionally, the Board approved a Renewable Energy Sales and Use of Resulting Revenues Policy that allows AMP to sell any eligible renewable power through 2019 not required to comply with AMP’s RPS. The resulting revenues from these sales are used to support initiatives to reduce Green House Gas (GHG) emissions associated with electricity use by AMP’s customers.
Since then, more stringent requirements have been adopted in addition to SB X1 2 requirements. In October 2015, SB 350 was signed into law mandating a 33 percent RPS target by 2020 and 50 percent by 2030. In September 2018, SB 100 was signed into law, further accelerating the RPS targets to 50 percent by 2026 and 60 percent by 2030. Starting January 2020, the Board approved and committed to supplying AMP’s customers with 100% Carbon-Free Energy and adopted a revised RPS Plan in November 2020 to align with the State’s current RPS requirements. AGENDA ITEM NO.: 4.F MEETING DATE: 03/15/2021 EXHIBIT D
AMP established a Board designated reserve in compliance with the policy. AMP sold its share of eligible renewable energy generated by NCPA’s Geothermal Project and Ameresco’s Ox Mountain LFGE facility from January 2013 to December 2017 to the California Department of Water Resources. Subsequent to the expiration of this contract, AMP negotiated a similar sale to Shell Energy North America from January 1, 2017 – December 31, 2019. Net revenue from the renewable energy sales is held in a designated reserve that is part of a Rate Stabilization Fund and, as such, is not pledged to secure the payment of the 2010 Installment Payments, the payments with respect to any Parity Obligations or any payment with respect to any Subordinate Debt. During fiscal year (FY) 2020, the revenue from the REC sales resulted in an additional $886,699 funding for the program and allocated $1,123,250 for purchased power, capital, and energy efficiency programs from the sales of eligible renewable power (see Statement of Revenues, Expenses and Changes in Net Position) toward the Board designated reserve as part of the Rate Stabilization Fund. This allocated net revenue included $19,821,572 of cash and $0 of receivables (see Statement of Net Position).
Additionally, the California Cap-and-Trade (C&T) program began implementation of auction sales of directly allocated allowances from the California Air Resources Board (CARB). The resulting revenues from these sales must be used for the benefit of retail ratepayers consistent with the goals of Assembly Bill 32. AMP established a Board designated reserve in compliance with the requirements of these directions. An expenditure plan that complies with current C&T regulations has been reviewed by the Board. Net revenue from auction sales of directly allocated allowances are held in a designated reserve that is part of a Rate Stabilization Fund and, as such, is not pledged to secure the payment of the 2010 Installment Payments, the payments with respect to any Parity Obligations or any payment with respect to any Subordinate Debt. During FY 2020, the revenue from C&T sales resulted in an additional $1,034,008 and allocated $542,115 for purchased power and SF6 breakers of net revenue from the auction sales of directly allocated allowances (see Statement of Revenues, Expenses and Changes in Net Position) toward the Board designated reserve as part of the Rate Stabilization Fund. This allocated net revenue included $3,619,827 of cash and $0 of receivables (see Statement of Net Position).
In FY 2020, AMP sold 5,000 Low Carbon Fuel Standards (LCFS) Program credits per the Board’s approval in April 2017. The revenue from the sale resulted in an additional $998,750 funding for the program that is administered by CARB. The program is to reduce the carbon intensity of transportation fuels in California by 10 percent by 2020. Pursuant to the California Code of Regulations Sec. 95483(e)(1), LCFS program proceeds may only be used to: benefit current or future EV customers, educate the public on the economic, environmental, and societal values of EV adoption (total cost of ownership compared to gasoline-fueled vehicles), and provide rate options that encourage off-peak charging and minimize grid impacts. AMP expects to continue monetizing these credits at a similar level through 2020. Net revenue from auction sales of directly allocated credits are held in a designated reserve that is part of a Rate Stabilization Fund and, as such, is not pledged to secure the payment of the 2010 Installment Payments, the payments with respect to any Parity Obligations or any payment with respect to any Subordinate Debt. During FY 2020, AMP allocated $194,070 for EV rebates of net revenue from the sale to LCFS sales of directly allocated allowances (see Statement of Revenues, Expenses and Changes in Net Position) toward the Board designated reserve as part of the Rate Stabilization Fund. This allocated net revenue included $1,737,572 of cash and $0 of receivables (see Statement of Net Position). AGENDA ITEM NO.: 4.F MEETING DATE: 03/15/2021 EXHIBIT D
Alameda Municipal Power Power Supply Resources Year Ended June 30, 2020
Capacity Available Source (MW)(1) Actual Energy (GWh) % of Total Energy
Purchased Power(2): Western Hydroelectric 17.2 57.8 12.0% Landfill Gas(4) 10.4 52.6 8.5% High Winds 3.3 18.6 5.9% Silicon Valley Power -- 36.5 10.3% NCPA
Hydroelectric Project 25.3 45.1 24.2%
Combustion Turbine Project No. 1 & 2(3) 24.8 3.3 1.5% Geothermal Plant 1(4) 10.0 44.0 0.0% Geothermal Plant 2(4) 8.9 15.4 0.0% Graeagle -- 2.5 0.6%
Other Purchases (Net) -- 76.8 37.0%
Total Capacity and Total Purchased Energy 99.9 352.7 103.2% Less Line Losses N/A (10.9) -3.2% AMP’s Capacity and Retail 62.0 341.8 100.0% Sales Requirements
(1) Non-coincident, maximum net qualifying capacity available for CAISO.
(2) Entitlements, firm allocations and contract amounts.
(3) Combustion Turbine Project No. 2 is also referred to as Unit One or the Project in the front part of this Official Statement. See “THE PROJECT” in the front part of this Official Statement.
(4) AMP sold its share of eligible renewable energy generated by the NCPA Geothermal Project and one of its landfill power purchase agreements through December 31, 2019. AGENDA ITEM NO.: 4.F MEETING DATE: 03/15/2021 EXHIBIT D
Alameda Municipal Power Electric Rate Changes Year Ended June 30, 2020
Percent Change Date (Average) Notes July 1, 2005 0.89% July 1, 2006 0.56% July 1, 2008 0.70% State mandated Solar Program July 1, 2009 0.09% 2.5% MU-1 rate increase July 1, 2010 3.75% July 1, 2011 3.85% July 1, 2012 3.25% July 1, 2013 3.25% July 1, 2014 2.00% July 1, 2015 4.60% July 1, 2016 5.00% July 1, 2017 5.00% July 1, 2018 1.00% July 1, 2019 2.50% July 1, 2020 0.00% Note: Fiscal Year 2021 AGENDA ITEM NO.: 4.F MEETING DATE: 03/15/2021 EXHIBIT D
Alameda Municipal Power Electric Customers, Sales, Revenues and Demand Year Ended June 30, 2020
Description 2016 2017 2018 2019 2020 Number of Customers Accounts: Residential 30,377 30,495 30,625 31,201 31,822 Commercial 3,735 3,764 3,778 3,808 3,852 Industrial 8 12 12 8 8 Public Authority 363 362 363 358 361 Other 11 15 12 21 24 Total Customers 34,494 34,648 34,790 35,396 36,067 Kilowatt Hour Sales: Residential 125,831,929 126,850,402 124,589,523 125,510,907 129,591,566 Commercial 176,575,883 172,520,353 168,873,305 164,807,447 166,745,235 Industrial 31,490,040 30,127,960 28,321,180 28,712,440 31,301,090 Public Authority 12,375,517 11,428,198 10,723,565 11,064,277 11,539,236 Other 2,546,494 2,838,825 2,518,330 2,324,054 2,605,615 Total kWh sales 348,819,863 343,765,738 335,025,903 332,419,125 341,782,742 Revenues from Sale of Energy: Residential $ 19,869,104 $ 21,510,126 $ 23,902,788 $ 24,414,010 $ 25,933,443 Commercial 27,071,358 27,177,335 28,500,186 28,354,299 29,341,107 Industrial 4,278,240 4,366,885 4,338,898 4,580,711 5,069,275 Public Authority 1,973,689 1,958,154 1,965,664 2,225,142 2,238,296 Other 1,028,631 913,247 793,870 1,453,471 149,514 Total Revenues from Sale of Energy $ 54,221,022 $ 55,925,747 $ 59,501,406 $ 61,027,633 $ 62,731,635
Peak Demand (kW) 64,283 63,738 59,624 62,131 61,990 AGENDA ITEM NO.: 4.F MEETING DATE: 03/15/2021 EXHIBIT D
Alameda Municipal Power Condensed Operating Results and Selected Balance Sheet Information Year Ended June 30, 2020
Description 2016 2017 2018 2019 2020 Electric System Revenues Sales of Electricity $ 54,221,022 $ 55,925,748 $ 59,501,406 $ 61,027,633 $ 62,731,635 Other Revenues (1) 1,852,516 3,159,383 1,890,697 1,891,371 1,425,258 REC & LCFS & C&T Sales(6) 6,363,950 5,071,175 3,435,082 4,159,358 2,909,457
Total Electric System Revenues 62,437,488 64,156,306 64,827,185 67,078,362 67,066,350
Operation and Maintenance by FERC categories
Purchased Power (2) 29,781,270 28,201,607 28,618,484 29,586,832 32,246,283 Energy efficiency, solar and other 1,684,963 1,504,629 1,172,615 1,773,249 1,271,590
Operations & maintenance 4,573,500 4,674,307 4,814,122 5,033,334 5,055,482 Customer service, information 2,226,364 2,170,617 2,296,001 2,617,469 3,179,247 systems Administrative and general 7,732,884 7,425,117 10,527,575 9,954,555 12,261,784 Customer relations 540,214 530,544 505,711 548,723 587,487 Jobbing sales expense 315,472 993,580 367,624 1,242,159 803,802 Balancing account adjustment (7) 1,010,084 1,425,636 2,821,087 4,860,258 1,020,615
Total Operation and Maintenance Costs 47,864,751 46,926,037 51,123,219 55,616,579 56,426,290
Net Revenues 14,572,737 17,230,269 13,703,966 11,461,783 10,640,060 Rate Stabilization Fund Transfers (6,363,950) (5,071,175) (3,435,082) (4,159,358) (2,909,457) Use of Reserves 2,281,580 1,020,393 5,652,517 2,240,289 2,075,437 Adjusted Annual Net Revenues 10,490,367 13,179,487 15,921,401 9,542,714 9,806,040 Debt Service (Principal + Interest) 2,640,325 2,631,044 2,626,368 2,617,703 2,586,594 Debt Service Coverage (3) 3.97 5.01 6.06 3.65 3.79
Amount Available After Debt Service $ 7,850,042 $ 10,548,443 $ 13,295,033 $ 6,925,011 $ 7,219,446
Selected Balance Sheet Information: (in thousands) Unrestricted Cash & Investments (4) $ 41,909 $ 39,422 $ 48,058 $ 56,310 $ 62,776 Rate Stabilization Fund Balance (6) 20,583 24,633 21,431 23,399 25,179 Net Plant in Service 38,470 36,275 38,333 35,852 33,186 Construction Work in Progress 1,736 6,452 2,873 3,862 5,198 Electric Utility Plant-Net 40,206 42,727 41,206 39,714 38,384 (5) Outstanding Electric System Debt 26,460 25,290 24,070 22,795 21,455
(1) Other Revenues includes operating and non-operating sources such as solar surcharge, interest income from investments, lease income, account establishment, reconnection and late fees, jobbing sales, and other miscellaneous items.
(2) Includes purchased power costs, payments to NCPA and TANC and prior year budget settlements from NCPA.
(3) Adjusted Annual Net Revenues divided by debt service.
(4) Includes General Reserve balance held at NCPA. See also “Available Reserves” below.
(5) During August 2010, AMP refinanced its 2000A/AT debt. The resulting 2010A/B revenue bonds had an initial book-entry principal of $31,685,000, or $7,360,000 less than the 2000A/AT debt. This advance refunding was undertaken to reduce debt service payments over the next 20 years by $17,662,628 and resulted in an economic gain of $2,308,432. In FY2014, AMP adopted GASB No. 65 and excluded the advance refunding from "Outstanding Electric System Debt" , see Note 4 to Financial Statements
(6) Includes Renewable Energy Sales and Auction Sales for Cap & Trade & Low Carbon Fuel Sales (LCFS) placed into reserve for Rate Stabilization Fund.
(7) Balancing account adjustment will be reflected on audited financials when pension and OPEB expense are finalized
AGENDA ITEM NO.: 5.A.1 MEETING DATE: 03/15/2021 ADMINISTRATIVE REPORT NO.: 2021-51 ACTION: FOR INFORMATION ONLY
To: Honorable Public Utilities Board Submitted by: ______/S/______Vidhi Chawla AGM-Energy Resources Planning
From: Jonnie Kipyator Approved by: ______/S/ Energy Resources Analyst Nicolas Procos General Manager
Subject: For Information Only: Summary of 10-Year Financial Pro Forma Analysis
RECOMMENDATION
This report is provided for information only; no action is required at this time. The purpose of this report is to present the updated summary of the 10-year financial pro forma analysis to inform the Public Utilities Board (Board) of the results. BACKGROUND
Each year staff presents the results of the 10-year pro forma model developed to comply with the Financial Guidelines for Rates, Revenues, and Reserves (Financial Guidelines) adopted by the Board on May 17, 2010. The Financial Guidelines include a debt service coverage ratio target, that cash from operations must be at least 1.75 times Alameda Municipal Power’s (AMP) total debt service and recommends an operating reserve requirement that at least 145 days of operating reserves are kept on hand to fund operations. The five-year ratemaking policy for fiscal year (FY) 2021 - FY 2025, adopted in October 2019, includes gradual and steady rate increases of no more than five percent per year contingent upon annual Board approval in addition to compliance with existing Financial Guidelines. (Please see Exhibits B and C for details). Table 1 shows how AMP has met the Financial Guidelines and ratemaking policy from FY 2017 – FY 2021 for the last 5 years.
Operating Rate Adjustment Debt Coverage Fiscal Reserves (No More Than 5 Ratio Year Approximately Percent) (Minimum of 1.75 ) ( 145 days) 2017 5.00% 2.16 214 2018 5.00% 2.93 200 2019 1.00% 4.79 214 2020 2.50% 4.31 297 2021 0.00% 2.24 287
Table 1 – Financial Criteria Five-Year Pro Forma Summary AGENDA ITEM NO.: 5.A.2 MEETING DATE: 03/15/2021 ADMINISTRATIVE REPORT NO.: 2021-51
DISCUSSION
The pro forma incorporates draft FY 2022 budget information developed in preparation for the budget workshop. The budget provides the revenue requirement for the first year and the pro forma provides the Board with financial information to consider when establishing the rate adjustment plan for the upcoming fiscal year and beyond.
The Pro Forma is showing a rate increase of up to 2 percent for FY 2022, with additional rate increases needed in the following years. The recommended rate increase will be finalized based on the final power budget from the Northern California Power Agency (NCPA) and brought to the April Board meeting. As summarized in Table 2 below, staff estimates that AMP will be able to sustain its reserve levels while planning for future capital expenditures and without causing sudden rate spikes by implementing a 2 percent rate increase annually. Staff makes projections for a robust level of operating reserves to cover its financial metrics and in anticipation of unbudgeted future costs.
The adjusted debt coverage ratio was calculated using the operating expenses funded by rates and does not include projects that are funded by designated reserves. Staff is providing this information to illustrate the effect of the strategy to increase the use of various designated reserves.
Net Days of Operating Rate Increase Avg Rate Debt Coverage Debt Coverage Operating FY Operating Reserves % (¢/kWh) Ratio Ratio Adjusted Surplus Reserves ($000s) ($000s) 2022 2.0% 18.92 2.12 4.22 314 $ (574) $ 55,088 2023 2.0% 19.30 1.83 3.38 258 $ (7,495) $ 47,679 2024 2.0% 19.68 2.39 4.02 232 $ (3,998) $ 43,767 2025 2.0% 20.08 2.68 4.40 222 $ (1,063) $ 42,792 2026 2.0% 20.48 2.86 4.15 211 $ (1,487) $ 41,394 2027 2.0% 20.89 2.09 2.92 190 $ (2,876) $ 38,608 2028 2.0% 21.30 2.74 3.65 180 $ (1,792) $ 36,923 2029 2.0% 21.73 3.85 4.70 173 $ (1,277) $ 35,755 2030 2.0% 22.16 4.25 5.10 169 $ (394) $ 35,471 2031 2.0% 22.61 N/A N/A 186 $ 2,778 $ 38,361
Table 2 –Pro Forma Analysis Results
Development of Pro Forma Analysis A pro forma statement summarizes the projected future financial status of a company; particularly projected cash flows and net revenues based on current financial statements. A long-term financial pro forma is developed using projections of revenues, operating and non- operating expenses, interest payments and other income. AMP’s revenue requirements are made up of power costs, transmission costs, materials, services and labor, debt payments, capital expenditures, and other non-operating expenses, e.g.: transfers to city, transfers to reserves, etc. Long-term estimates of each of these individual components are developed using assumptions based on the best judgement from staff using the latest information available. After that, sources of funding are determined for the revenue requirements. Revenue requirements can be funded from rates, debt, or designated funds, e.g.,
AGENDA ITEM NO.: 5.A.3 MEETING DATE: 03/15/2021 ADMINISTRATIVE REPORT NO.: 2021-51
Renewable Energy Credit (REC) sales revenue or Cap and Trade (C&T) auction proceeds, undergrounding reserves, etc. Revenue requirements are also defined as total budget costs. Using the Financial Guidelines adopted by the Board, a rate increase trajectory is determined that will be necessary to maintain AMP’s financial health in the long term. Assumptions Key assumptions used in developing the FY 2022 pro forma are discussed below:
• Power Costs AMP’s power cost is the total cost of providing power to serve its customer load. Staff used preliminary budget estimates from Northern California Power Agency’s (NCPA’s) budget for FY 2022 and the FY 2022 Load Forecast recently adopted at the January 27, 2021 Board meeting to forecast all direct and indirect costs related to its generation resources, transmission, power management, wildfire related costs, resource adequacy market values, and market transactions.
• Capital Expenditures AMP’s capital expenditures are an estimate of costs related to the improvement and replacement of existing infrastructure and new infrastructure projects. For the FY 2022 pro forma analysis, staff included $5.1 million in Engineering and Operations improvements, with $1.9 million funded by designated reserves. This includes investment towards interconnection costs for the Doolittle solar project, replacing aging infrastructure, making new customer connections, and improving the overall resiliency of the distribution grid.
• Labor, Materials and Service Costs A simple escalator that can vary by fiscal year is used to develop estimates for labor, materials, and service costs from the current fiscal year budget. Staff aligned escalators for labor costs with executed labor agreements where appropriate.
• Other Costs and Expenditures In addition to operating and capital expenses, AMP has other non-operating expenses which include, but are not limited to, its debt payments, rebates to customers, transfers to the City, including Payment in Lieu of Taxes, and Return on Investment transfers to reserves.
• Funding sources Revenue requirements may be funded by rates, debt, or designated reserves. Designated reserves may be used to fund special projects subject to Board policies that define limitations on the use of such funds. Staff assumes expanded use of designated funds to cover certain customer programs (e.g., energy efficiency, electrification, etc.), a local solar project and a portion of renewable power purchases above and beyond the RPS mandate. Formal Board review and approval of FY 2022 designated reserves spending will occur at the FY 2022 budget workshop on April 19, 2021.
AGENDA ITEM NO.: 5.A.4 MEETING DATE: 03/15/2021 ADMINISTRATIVE REPORT NO.: 2021-51
As shown in Figure 1, staff plans for moderate use of REC reserves anticipating most of the remaining balance of the REC reserve to be used by FY 2031 on designated uses allowed by the Board and program regulations. While staff assumes a moderate replenishment of C&T proceeds through the quarterly auctions, staff plans to use most of AMP’s annual allocation because;
o The C&T reserve is currently more flexible and can be used on a wider range of designated uses unlike REC, LCFS and Undergrounding Reserves. o Given the changing regulatory environment at California Air Resources Board (CARB), the agency that administers the C&T program; staff anticipates future changes to the program will impact the allowed uses of the program.
Figure 1 – Designated Reserve Drawdown Analysis Comparison of Key Assumptions from last year Table 3 shows a detailed comparison of last year’s forecast for FY 2022 costs to this year’s forecast of FY 2022 costs and highlights a total estimated revenue requirement for FY 2022 that is $900 thousand lower than last year’s estimate. This decrease is largely due to decreased power costs.
AGENDA ITEM NO.: 5.A.5 MEETING DATE: 03/15/2021 ADMINISTRATIVE REPORT NO.: 2021-51
FY 2021 Forecast FY 2022 Forecast Difference for FY 2022 ($ for FY 2022 ($ ($ Million) Million) Million)
Power Costs (including transmission) $37.5 $36.1 (1.4)
Capital Costs $4.6 $5.1 0.5
Material, Services, and Labor Costs $25.2 $25.2 0.0
Non-Operating Expenses $1.3 $1.3 (0.0)
Debt Service $2.7 $2.6 (0.0) Contribution to City $5.7 $5.7 (0.1) Revenue Requirement $76.9 $76.0 (0.9) Table 3 – FY 2022 Cost Comparison Key drivers for FY 2022 revenue requirements are lower power costs and higher capital costs. Staff receives detailed information from NCPA’s budgets and ten-year forecast, allowing for a deeper analysis of the underlying cost determinants. This year, the two key drivers for lower net power costs are: 1) increase in projected generation revenues due to higher market price and, 2) an assumption for development of a wildfire insurance fund1 was included in last year’s projection which is not included in this year’s projection based on most up to date information from NCPA. Additional changes include increased load aggregation costs, increased operating & maintenance (O&M) costs related to wildfire mitigation and emissions reductions, increases in NCPA’s labor costs related to labor contracts and new hiring for cybersecurity roles, and increased power management costs. However, these additional changes were not large enough to offset the effects of the two main drivers for lower net power costs. Results As shown in Figure 2, AMP needs rate increases in later years and draws from designated reserves to sustain sufficient operating reserves and maintain its debt coverage ratio close to the targets established in the Board adopted Financial Guidelines.
1 Similar to the Investor Owned Utilities, Staff had made an assumption for a Publicly Owned Utilities wildfire fund.
AGENDA ITEM NO.: 5.A.6 MEETING DATE: 03/15/2021 ADMINISTRATIVE REPORT NO.: 2021-51
Figure 2 – FY 2022 Pro Forma Model Results - Key Financial Criteria Additionally, as shown in Figure 3, staff estimates that AMP can maintain sufficient operating reserves to plan for future capital projects and other unexpected expenditures without causing sudden rate spikes or increasing rates by more than 2% in later years.
Figure 3 – FY 2022 Pro Forma Analysis Results – Rate Increase and Reserves Figure 4 shows the estimated revenue requirements for the next 10 years. As can be seen from the graph, variation in revenue requirements across the years is primarily caused by changes in power costs and capital costs.
AGENDA ITEM NO.: 5.A.7 MEETING DATE: 03/15/2021 ADMINISTRATIVE REPORT NO.: 2021-51
Power costs will continue to increase due to 1) increasing costs of operation and maintenance of NCPA power plants and 2) increasing Transmission Access Charge (TAC). For the capital budget, the projections include significant spending on undergrounding, interconnection of new loads, Doolittle solar interconnection and substation upgrades. Finally, labor, services, and materials costs steadily increase over time based on a cost escalator linked to interest rates, contracts, and inflation.
Figure 4 – Ten-Year Pro Forma Revenue Requirement CONCLUSION The Pro Forma is showing a rate increase of two percent for FY 2022, based on preliminary budget inputs. Staff will finalize the rate increase target when final budget numbers become available. The final rate change proposal may include rate class changes for an overall neutral impact on the system average rate. FINANCIAL IMPACT Staff projects a draw from operating reserves and designated reserves to cover increases in revenue requirements in FY 2022. NEXT STEPS
Staff will develop recommendations on how to use its designated reserves and present the final budget and rate adjustments for approval on April 19, 2021.
AGENDA ITEM NO.: 5.A.8 MEETING DATE: 03/15/2021 ADMINISTRATIVE REPORT NO.: 2021-51
LINKS TO STRATEGIC PLAN AND METRICS
Business Resiliency Strategy 2: AMP will develop financial planning processes that provide fiscal stability and clearly communicate service priorities with their associated costs. T1: Include a longer-term outlook of the Capital Improvement Plan in the annual budget. T2: Improve rate design to reflect AMP’s Strategic Plan. KPI: Maintain rates at 15 percent or more below PG&E and 10 percent or more below local CCAs.
EXHIBIT
A. Power Point Presentation B. Financial Guidelines for Rates and Revenue, and Reserves, adopted at the May 17, 2010 Board meeting C. Ratemaking Policy for FY 2021 Through FY 2025 – Resolution No. 5165
AGENDA ITEM NO.: 5.A MEETING DATE: 03/15/2021 EXHIBIT A
Ten-year Pro Forma Fiscal Years 2022 – 2031
March 15, 2021
1 Overview
• Background/Methodology • Summary of Pro Forma Analysis • Key drivers and assumptions • Results • Recommendations and Next Steps
2 Background and Methodology
3 Rate Adjustment Plan
• AMP’s Ratemaking Policy outlines a strategy to avoid rate spikes while maintaining good financial standing – Avoid unanticipated rate spikes. – Comply with adopted financial policies. • <=5% annual rate increase • 1.75 x debt coverage ratio • 145 days of operating reserves – Board conceptually approved rate increases of less than 5 percent each year contingent upon approval
4 AMP’s Strategic Plan
• In January 2019, the Board approved a new Strategic Plan. – Strategy 2 of the Business Resiliency Issue reads, “AMP will develop financial planning processes that provide fiscal stability and clearly communicate service priorities with their associated costs.” – Tracking progress is primarily through the key performance indicator – “Maintain rates at 15 percent or more below Pacific Gas & Electric and 10 percent or more below local Community Choice Aggregators.”
5 Prior Years’ Rate Increases and Compliance
• AMP’s prior years’ rate increases were recommended in compliance with policies laid out by the rate adjustment plan.
Debt Coverage Rate Adjustment Operating Reserves Fiscal Ratio (No More Than 5 Approximately Year (Minimum of Percent) (145 days) 1.75 ) 2017 5.00% 2.16 214 2018 5.00% 2.93 200 2019 1.00% 4.79 214 2020 2.50% 4.31 297 2021 0.00% 2.24 287
6 Pro Forma Analysis - Methodology
Step 1: Develop revenue requirement (total budget costs)
Key Components of revenue requirement are: • Power costs • Labor, services, and materials • Debt service • Transfers • Capital projects – Regular maintenance projects – Undergrounding – Non-routine projects e.g. development of Alameda Point
7 Pro Forma Analysis – Methodology cont.
Step 2: Determine how revenue requirement is financed o Revenue requirement can be funded using either rates, debt or designated reserves • Rates • Debt • Designated reserves – Renewable Energy Credit (REC) – Cap and Trade (C&T) – Underground – Low Carbon Fuel Standard (LCFS) o Designated reserves can only be used to fund specific projects
Step 3: Determine rate increases required to meet financial metrics as per the ratemaking policy
8 Key Drivers and Assumptions
9 Assumptions: Power Cost
Impact on Power Costs Market Price Elevation (Higher Revenues)
Wildfire-related Costs
Debt Reductions
Plant Related Costs
Transmission Costs
10 Assumptions: Capital Expenditures
Capital Improvement Plan (Engineering & Operations) • Interconnection Costs for Doolittle Solar project • Distribution Projects for New Loads/New Development • Underground Projects • Breaker Replacements • Substation Work
11 Summary of Analysis and Detailed Results
12 Summary of FY2022 Pro Forma Analysis
Starting FY2023, AMP plans to keep rate increases no greater than 5 percent, while allowing the operating reserve levels to gradually reduce closer to our financial metrics and acknowledging unbudgeted future costs.
Net Days of Operating Rate Increase Avg Rate Debt Coverage Debt Coverage Operating FY Operating Reserves % (¢/kWh) Ratio Ratio Adjusted Surplus Reserves ($000s) ($000s) 2022 0.0% 18.55 1.52 3.36 270 $ (1,840) $ 47,409 2023 5.0% 19.47 1.78 3.36 217 $ (6,898) $ 40,596 2024 2.0% 19.86 2.39 4.06 197 $ (3,179) $ 37,503 2025 2.0% 20.26 2.66 4.43 193 $ (205) $ 37,386 2026 2.0% 20.67 2.80 4.08 184 $ (899) $ 36,576 2027 2.0% 21.08 2.05 2.88 163 $ (3,176) $ 33,490 2028 2.5% 21.61 2.82 3.73 154 $ (1,669) $ 31,928 2029 2.5% 22.15 4.11 4.96 150 $ (740) $ 31,297 2030 2.5% 22.70 4.67 5.53 151 $ 582 $ 31,990 2031 2.5% 23.27 N/A N/A 174 $ 4,221 $ 36,324
13 FY2022 - 2031 Revenue Requirements
14 Recommendation and Next Steps
• Staff recommends a zero percent rate increase for FY 2022 based on preliminary budget inputs.
Upcoming events: • April 19 PUB Meeting: – FY 2022 Budget Workshop – FY 2022 Cost of Service and Rates Update PUB Meeting
• June Meeting: – Adoption of FY 2022 Budget and Budget Policy
15 Questions
Johnstone Kipyator Energy Resources Analyst (510) 814-6412 [email protected]
16 Additional Information
17 Designated Reserves
• AMP plans for moderate drawdown of the designated reserve accounts.
$40,000,000
$35,000,000
$30,000,000
$25,000,000
$20,000,000
$15,000,000
$10,000,000
$5,000,000
$0 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 Underground Reserve Solar PV Reserve Renewable Energy Credits Reserve Cap and Trade Reserve Low Carbon Fuel Standard Reserve
18 AGENDA ITEM NO: 6.B.1 MEETING DATE: 05/17/2010 ADMINISTRATIVE REPORT NO.: 2010-67
To: Honorable Public Utilities Board Submitted by:______/s/______Robert J. Orbeta AGM - Administration
From: Robert J. Orbeta AGM - Administration Approved by:____/s/______Girish Balachandran General Manager
Subject: Financial Guidelines for Rates and Revenue, and Reserves ______
RECOMMENDATION
By motion, it is recommended that the Public Utilities Board (Board) accept the financial guidelines for rates and revenue and that the Board accept the financial guidelines for reserves.
BACKGROUND
Alameda Municipal Power (AMP) hired Sandra McDonald of McDonald Partners as its Financial Advisor (FA) for financial planning, and to review the Series 2000A and 2000AT Certificates of Participation (COPs). The FA has been conducting a comprehensive review of financial planning goals, the COPs, and bond coverage requirements. Additionally, staff has developed a series of assumptions and scenarios with the FA to generate a Ten Year Financial Plan that will be used to balance revenue with expenses while maintaining adequate reserves.
As a result of the work performed with the FA, the financial policies that are being proposed by staff at this time are intended to document some of the financial planning guidelines that will be used in the rate, revenue and reserve planning process, and to support the refinancing efforts of the Series 2000A and 2000AT COPs. AMP is establishing these financial guidelines to ensure that finances are managed in a manner that will continue to provide for the delivery of reliable electric service as the community grows, manage the organization so that it lives within its means, and to establish reserves necessary to meet unanticipated expenditures and service level emergencies.
At the January 25, 2010 Board meeting, the FA discussed financial planning goals, importance of AMP’s credit rating, primary drivers for credit ratings, and credit implications of reserves. The FA highlighted that the goal of financial planning was to maintain adequate reserves and liquidity, maintain or improve credit ratings, comply with bond covenants, enhance transparency, reduce debt expense and minimize rate impacts.
AGENDA ITEM NO.: 5.A MEETING DATE: 03/15/2021 EXHIBIT B AGENDA ITEM NO: 6.B.2 MEETING DATE: 05/17/2010 ADMINISTRATIVE REPORT NO.: 2010-67
At the February 22, 2010 Board meeting, the FA provided a market update, a debt refunding analysis, an alternative structuring of reserves, and the credit implications of implementing the debt/reserve alternatives.
At the March 15, 2010 Board meeting, the FA recapped the financial planning discussions and recommended financial guidelines:
• The FA recommended that the financial guideline for unrestricted operating cash should have a target of 145 days, a low of 100 days, and a high of 270 days.
• The FA highlighted that this recommendation was contingent on no significant change in AMP’s power portfolio risk.
• The FA recommended that the debt service coverage ratio should have a target of 1.75x.
• The FA highlighted that this recommendation is at the low end of range for the entire WECC peer group, but that it was appropriate for AMP’s level of debt and capital expenses.
• The FA concluded that:
o Pro forma results should include, at a minimum, sufficient revenues to meet both the 145 days of operating cash on hand and a 1.75x debt service coverage ratio;
o Rates may be set to collect additional funds for future planned expenditures while avoiding, or minimizing, future debt issuances and providing rate stabilization; and
o Mid-year rate increases should be considered when there is less than 100 days of operating cash on hand or when there is less than the minimum bond coverage ratio.
In addition to the FA presentation and recommendations at the March 15, 2010 Board meeting, staff presented a 10-year pro forma financial plan and introduced recommendations for rate principles and guidelines for ratemaking purposes.
During the 10-year pro forma financial plan presentation, staff highlighted the purpose behind creation of the pro forma, indicated the key drivers that impact the results of the planning model, identified factors that are causing operating costs to rise, discussed assumptions contained in the planning model, identified a sampling of questions to be addressed in the scenario analysis, and provided an analysis of findings resulting from each of the scenarios. The conclusion was that, over the long term, there are only small differences between the scenario options, and that excess renewable power sales only forestall future revenue requirements. The analysis confirmed that a steady, gradual basis for rate adjustments will meet the needs of AMP. AGENDA ITEM NO: 6.B.3 MEETING DATE: 05/17/2010 ADMINISTRATIVE REPORT NO.: 2010-67
During the rate principles and guidelines presentation, staff highlighted some of the existing policy directives and strategies related to ratemaking. Additionally, staff discussed development of the ratemaking principles and highlighted that development of a rate structure must reach reasonable compromises between conflicting and competing objectives.
DISCUSSION
The following financial guidelines are recommended to the Public Utilities Board for implementation by staff:
General
1. AMP shall manage its financial assets in a sound a prudent manner.
2. AMP shall maintain sound financial practices in accordance with applicable law and regulations.
3. AMP shall allocate its available financial resources toward meeting goals identified in the Board adopted strategies.
4. AMP shall ensure long-term fiscal sustainability in funding all direct and indirect costs necessary to provide reliable electric service.
5. AMP shall maintain accounting systems in conformance with generally accepted accounting principles (GAAP).
6. AMP shall establish and maintain investment policies in accordance with State law and sound investment principles, ensuring safety and liquidity of principal over yield.
7. AMP shall ensure compliance with all financial covenants contained in any bond indenture, lease, installment sale agreement, letter of credit or other financing document.
Rates & Revenues
1. AMP shall at least annually review all rates and charges.
2. AMP shall seek approval of any required rate increase to: a. ensure that the current rates and charges and any other revenues, together with any planned transfer from a Rate Stabilization Fund or the Operating Reserve, recover the full cost of operating AMP, including all operating costs, payments in lieu of taxes, general fund transfers, debt service and capital projects that are not expected to be paid with the proceeds of bonds, b. provide a target coverage of ratio of 1.75X (based on calculations in accordance with AMP’s bond documents).
AGENDA ITEM NO: 6.B.4 MEETING DATE: 05/17/2010 ADMINISTRATIVE REPORT NO.: 2010-67
3. AMP shall bill customers for electric service in a timely manner. No customers shall receive free service.
4. AMP shall aggressively pursue revenue collection and auditing to ensure that monies due are received in a timely manner.
5. AMP shall establish connection fees, development fees or other user fees that fully support the total direct and indirect cost of any activity that benefits only specific customers or individuals, including administrative overhead and depreciation, except as provided by other specific policy criteria.
6. AMP shall prepare periodic financial reports of actual revenues and expenditures for review by the Public Utilities Board, in order to provide information on the status of AMP’s financial condition, as required by the City Charter.
7. AMP shall maintain and further develop methods to monitor major revenue sources and evaluate financial trends, assisted by outside technical consultants as necessary.
Reserves
1. AMP shall establish, dedicate and maintain reserves annually to meet known and estimated future obligations.
2. In preparing each Annual Budget and Annual Rate Review, AMP shall target a projected Operating Reserve fund balance at the end of each fiscal year shall be at least equal to: a. 145 days of all operating expenses including any payment-in-lieu of taxes/ROI. b. It is understood that the target set forth above is a guideline and the Board may adopt a budget and establish rates such that the projected operating reserve fund balance is higher or lower than the target amount; however, in no case shall the projected operating reserve balance be less than 100 days of all operating expenses including any payment-in-lieu of taxes. c. Operating expenses shall include costs for purchased power, maintenance, operations, customer accounts, sales, administration & general, and PILOT/ROI. Specifically excluded from the definition are depreciation, non-operating revenue and expenses, debt related charges, the transfer to the General Fund, capitalized equipment costs, and capital project work including outside billing to 3rd parties.
3. AMP shall establish Board designated reserve accounts which include, but are not limited to, designated reserves for the following: a. Reserve for solar rebates; b. Reserve for undergrounding; c. Reserves for insurance.
AGENDA ITEM NO: 6.B.5 MEETING DATE: 05/17/2010 ADMINISTRATIVE REPORT NO.: 2010-67
FINANCIAL IMPACT
None.
LINK TO STRATEGIC PLAN AND METRICS
Strategy No. 2: Ensure utility financial health is preserved through short and long term risk management planning.
EXHIBIT
None.
AGENDA ITEM NO.: 5.A MEETING DATE: 03/15/2021 EXHIBIT C
CITY OF ALAMEDA ALAMEDA MUNICIPAL POWER
RESOLUTION NO. 5165
APPROVE ALAMEDA MUNICIPAL POWER’S RATEMAKING POLICY FOR FISCAL YEAR 2021 THROUGH FISCAL YEAR 2025 ______
WHEREAS, the Public Utilities Board (Board) hereby finds that the following policy provides reasonable principles and guidelines for the determination of rates;
NOW THEREFORE BE IT RESOLVED that the Board hereby approves the following Ratemaking Policy:
AMP shall align previous principles and guidelines with current strategies and practices to assure that rates:
1. Provide adequate revenue • Cover operating, non-operating, and capital expenditures • Ensure a reasonable level of working capital is available for unexpected events • Provide 145 days operating cash on hand • Provide 1.75 debt service coverage ratio
2. Consider equity • Support equity between and within customer classes • Support equity in discount, incentive, and rebate programs
3. Send price signals to customers • Reflect the cost of service o Fixed customer or meter charge for each rate class to help recover the costs of customer billing and overhead independent of energy usage • Be simple yet understandable • Encourage customer response to energy usage and consider different rate structures o Time-dependent rates o Tiered rates o Demand charges 4. Reflect the community’s social priorities • Consider the social priorities found in the Strategic Plan o 100% carbon-free portfolio o Energy efficiency and building electrification o Transportation electrification o Low-income and disadvantaged community programs o Customer assistance programs o Utility Underground Districts • Promote economic development • Include appropriate public goods charges (i.e. surcharge mandated by the Public Utilities Code to generate funds for (i) energy efficiency & conservation, (ii) new investment in renewables and related technologies, (iii) research, development, and demonstration programs to advance science and technology, and (iv) services for low-income electricity customers) • Consider additional funding sources (e.g. Renewable Energy Credit sales, Cap & Trade auction proceeds, and Low Carbon Fuel Standard credit sales)
5. Strive to be competitive • Continue to be competitive with rates for equivalent customers in neighboring communities
6. Are adjusted based on annual projections • Review financial projections, rates, and charges annually • Base rate changes on first five years of 10-year financial model results o Account for longer-term outlook of the Capital Improvement Plan (CIP) and other planning documents • Adjust rates to reflect changes in costs o Rate increases should be gradual (slow and steady) o No more than 5 percent on average per year, if possible • Enact annual rate changes effective July 1, unless otherwise required • Provide advance notice to customers
7. Utilize successive five-year rate plans to implement the preceding rate principles.
AYES: President McCormick, Vice President Serventi, Commissioner Giuntini, Commissioner Gould, and City Manager Eric Levitt NOES: None ABSENT:
IN WITNESS WHEREOF, I have set my hand on this 22nd day of October 2019.
/S/ ______Date Nicolas Procos Public Utilities Board Secretary
To: Honorable President and Members of the Public Utilities Board From: Nicolas Procos, General Manager Re: General Manager’s Report – February 2021
PUB Highlights Economic Development Highlights —
o Firebrand Artisan Breads will soon be producing its gourmet baked goods in Alameda. Building 9, located at 707 West Tower Avenue, was purchased by SRM Ernst in 2017 and underwent a $24 million renovation project. The newly renovated 40,000 sq ft facility is expected to come online the first week of April with retail and a café opening in the following months. The company will employ up to 150 people striving to overcome employment barriers, such as previously being homeless and previously incarcerated. o The College of Alameda’s new president, Dr. Nathaniel Jones, has announced that he is looking to update the campus with a focus on sustainability and carbon reduction. o Shell Oil Company, owner of the 4.1-acre Pennzoil property at the corner of Clement & Grand, is demolishing all the buildings and above-ground tanks and conducting remediation work to prepare the property for sale.
Engineering and Operations Updates — o NERC/WECC self certification of compliance completed and submitted. o Various cybersecurity trainings and DOT required trainings/certifications completed.
Safety February 2021: o 2021 Lost Time Cases: 0 o 2021 Recordable Injuries: 1 o 2021 First Aid Cases: 0 o 2021 Vehicle Accidents/ Incidents: 0
GENERAL MANAGER’S REPORT AGENDA ITEM NO.: 6.A.2 REPORTING PERIOD: February 2021 MEETING DATE: 03/15/2021
Number of New Customer Enrollments to AMP’s Financial Assistance Programs
GENERAL MANAGER’S REPORT AGENDA ITEM NO.: 6.A.3 REPORTING PERIOD: February 2021 MEETING DATE: 03/15/2021 CUSTOMER PROGRAMS & EXPERIENCE Table 1: Summary of Energy Efficiency Programs as of February 23, 2021
SUMMARY OF ENERGY EFFICIENCY PROGRAMS AS OF FEBRUARY 23, 2021
Annual Cumulative Percent Savings Jan- Energy Program 1st Q 2nd Q Feb-21 of Annual Target 21 Savings Target kWh/yr kWh/yr Residential 168,000 3,099 1,922 147 239 5,408 3.22% Lighting Residential 0 8,043 7,711 3,624 699 20,077 Other EAP+ (Low Income 0 34,734 34,673 0 0 69,407 Residential) Energy Plus 457,555 0 207,129 0 328,031 535,160 117% Non- Residential 89,024 11,094 299,805 0 0 310,899 349% Lighting, Custom Non- Residential 87,532 0 0 0 0 0 0% Customized, Other Non- Residential 20,888 0 0 0 0 0 0% New Construction Non- Residential, 0 0 0 0 0 0 Other TOTAL 823,000 56,970 551,240 3,771 328,969 940,950 114.3%
GENERAL MANAGER’S REPORT AGENDA ITEM NO.: 6.A.4 REPORTING PERIOD: February 2021 MEETING DATE: 03/15/2021
13 12 11 10 9 8 7 6 5 # of Rebates 4 3 2 1 0 Feb-21 Jan-2021 FY 2021 Q1 FY 2021 Q2
Residential Used Electric Vehicle Rebates GENERAL MANAGER’S REPORT AGENDA ITEM NO.: 6.A.5 REPORTING PERIOD: February 2021 MEETING DATE: 03/15/2021
160 4 140 10 120
100
80 3 Commercial 60 # of Rebates Residential 40 0 20 0 30 0 3 80 144 128 10 7 0 5 FY 2018 FY 2019 FY 2020 Jan-2021 Feb-2021 FY 2021 Q1 FY 2021 Q2
Figure 1: Electric Vehicle Charger Rebates
1200 1100 1036 1045 1000 900 834 800 700 600 500 519 400 341 300 80 238 93 200 167 73 100 233 210 37 42 89 27 27 26 79 114 80 0 48 53 49 FY05-FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 BEV PHEV Cumulative Enrollments
Figure 2: Electric Vehicle Discount Program Participation GENERAL MANAGER’S REPORT AGENDA ITEM NO.: 6.A.6 REPORTING PERIOD: February 2021 MEETING DATE: 03/15/2021
140
120
100
80
60
40
20
0 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY21 data as of 2/24/2021 NC = new construction ERG Pending NC ERG Pending EX ERG NEM EX = existing building
Figure 3: Residential Solar Interconnections
12
10
8
6
4
2
0 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY21 data as of 2/24/2021 NEM ERG ERG Pending Existing ERG Pending NC
Figure 4: Commercial Solar Interconnections GENERAL MANAGER’S REPORT AGENDA ITEM NO.: 6.A.7 REPORTING PERIOD: February 2021 MEETING DATE: 03/15/2021
45 40 38 39 35 33 30 30 28 28 25 25 25 23 20 15
10 9 5 0 FY19 FY20 FY21 Jul FY21 FY21 FY21 Oct FY21 FY21 FY21 Jan FY21 Aug Sep Nov Dec Feb Installed In Process Cumulative Installed
Figure 5: Battery Storage
GENERAL MANAGER’S REPORT AGENDA ITEM NO.: 6.A.8 REPORTING PERIOD: February 2021 MEETING DATE: 03/15/2021
FINANCIALS Table 2: Monthly and Year to Date Total Operating Revenue and Expense Report as of February 28, 2021 Report Status as of: Annual (FY) February 28, 2021 Monthly To Date Goal Result Goal Result Total Operating Revenue - Electric 6,178,606 5,609,244 38,510,044 38,630,894 (January 2021)
Total Operating Expense - Electric 5,851,142 5,583,895 35,614,738 29,826,862 (January 2021)
Note: Shaded areas indicate the data is displayed on the accompanying graphs
GENERAL MANAGER’S REPORT AGENDA ITEM NO.: 6.A.9 REPORTING PERIOD: February 2021 MEETING DATE: 03/15/2021
$12,000,000
$10,000,000
$8,000,000
$6,000,000
$4,000,000
$2,000,000
$-
Result Last Year
Figure 6: Fiscal Year 2021 Cumulative Net Income – Electric
$7,000,000
$6,000,000
$5,000,000
$4,000,000
$3,000,000
$2,000,000
$1,000,000
$-
Goal / Expectation Last Year Result
Figure 7: Fiscal Year 2021 Monthly Operating Revenue – Electric
GENERAL MANAGER’S REPORT AGENDA ITEM NO.: 6.A.10 REPORTING PERIOD: February 2021 MEETING DATE: 03/15/2021
$7,000,000
$6,000,000
$5,000,000
$4,000,000
$3,000,000
$2,000,000
$1,000,000
$-
Goal / Expectation Last Year Result
Figure 8: Fiscal Year 2021 Monthly Operating Expense – Electric
$70,000,000
$60,000,000
$50,000,000
$40,000,000
$30,000,000
$20,000,000
$10,000,000
$-
Goal / Expectation Last Year Result
Figure 9: Fiscal Year 2021 Cumulative Operating Revenue – Electric GENERAL MANAGER’S REPORT AGENDA ITEM NO.: 6.A.11 REPORTING PERIOD: February 2021 MEETING DATE: 03/15/2021
$70,000,000
$60,000,000
$50,000,000
$40,000,000
$30,000,000
$20,000,000
$10,000,000
$-
Goal / Expectation Last Year Result
Figure 70: Fiscal Year 2021 Cumulative Operating Expense – Electric
GENERAL MANAGER’S REPORT AGENDA ITEM NO.: 6.A.12 REPORTING PERIOD: February 2021 MEETING DATE: 03/15/2021
Table 3: Special Revenue Summary – Fiscal Year 2021 Year-to-Date through February 2021
GENERAL MANAGER’S REPORT AGENDA ITEM NO.: 6.A.13 REPORTING PERIOD: February 2021 MEETING DATE: 03/15/2021
OPERATIONAL STATISTICS
90 80
70 60.9 58.0 57.6 57.8 57.4 60 53.0 48.5 50 40
Minutes SAIDI Minutes 28.7 28.8 30 regional avg * 20 11.4 9.8 10.0 natl. top quartile * 10 0 Mar 20 Mar 20 Apr 20 May 20 Jun 20 Jul 20 Aug 20 Sep 20 Oct 20 Nov 20 Dec 21 Jan 21 Feb
Month
Figure 11: Rolling Twelve-Month System Average Interruption Duration Index (SAIDI)
*Based on Benchmark study of APPA Region 6
SAIDI= Sum of customer-minutes off for all interruptions Total number of customers served
System Average Interruption Duration Index (SAIDI): SAIDI is defined as the average duration of interruptions for customers served during a specified time period. Similar to CAIDI, but the number of customers served instead of affected is used. The unit is minutes. A common usage of SAIDI is "If all customers were without power the same amount of time, they would have been out for _____ minutes.
GENERAL MANAGER’S REPORT AGENDA ITEM NO.: 6.A.14 REPORTING PERIOD: February 2021 MEETING DATE: 03/15/2021
1.2
1.0 0.92 0.89 0.88 0.88 0.88 0.87 0.82 0.8
0.6 0.50 0.50 # of outages 0.4 # of outages 0.15 regional avg * 0.2 0.11 0.12 natl. top quartile * 0.0 Mar 20 Mar 20 Apr 20 May 20 Jun 20 Jul 20 Aug 20 Sep 20 Oct 20 Nov 20 Dec 21 Jan 21 Feb
Month
Figure 12: Rolling Twelve-Month System Average Interruption Frequency Index (SAIFI)
*Based on Benchmark study of Western Regional Utilities
Total # of customers affected by SAIFI= interruptions Total number of customers served
System Average Interruption Frequency Index (SAIFI): SAIFI describes the average number of times a customer experiences a sustained interruption during a specified time period. The unit for SAIFI is 'interruptions per customer'. A common usage of SAIDI is "On average, customers experienced _____ interruptions".
GENERAL MANAGER’S REPORT AGENDA ITEM NO.: 6.A.15 REPORTING PERIOD: February 2021 MEETING DATE: 03/15/2021
100.0 90.0 85.2 85.2 77.4 80.0 66.4 70.0 64.5 65.3 65.2 65.4 65.5 57.1 57.3 56.0 60.0 50.0 minutes minutes 40.0 regional avg * 30.0 natl. top quartile * 20.0 10.0 0.0 Mar 20 Mar 20 Apr 20 May 20 Jun 20 Jul 20 Aug 20 Sep 20 Oct 20 Nov 20 Dec 21 Jan 21 Feb
Month
Figure 13: Rolling Twelve-Month Customer Average Interruption Duration Index (CAIDI)
*Based on Benchmark study of Western Regional Utilities
Sum of customer-minutes off for all sustained CAIDI= interruptions Total # of customers affected by the sustained interruptions
Customer Average Interruption Duration Index - CAIDI CAIDI is the weighted average length of an interruption for customers affected during a specified time period. The unit of CAIDI is minutes. A common usage of CAIDI is "The average customer that experienced an outage is out for _____ minutes.
GENERAL MANAGER’S REPORT AGENDA ITEM NO.: 6.A.16 REPORTING PERIOD: February 2021 MEETING DATE: 03/15/2021
5,000
4,500
4,000
3,500
3,000
2,500
2,000
1,500
1,000
500
-
IVR CSR Result Figure 148: Fiscal Year 2021 Call Volume Through February 28, 2021