HomeMy WebLinkAbout15 Cost Control Measures Agenda Item # 15
Public Utility District
WORKSHOP
To: Board of Directors
From: Mary Chapman
Date: February 03, 2010
Subject: Discussion of District Cost Control Measures
1. WHY THIS MATTER IS BEFORE THE BOARD
The Board has asked for a summary of cost cutting measures undertaken by the
District.
2. HISTORY
Each year, staff identifies ways to cut both operating and capital costs. Some of the
cost cutting measures are brought to the Board. Many are part of the daily work
performed at the District. Savings from both types are subsequently built into future
budgets.
3. NEW INFORMATION
Attachment 1 is a list of cost cutting measures for FY08, FY09 and FY10 that are
proposed or have already been achieved. This list is by no-means exhaustive but is
representative of the results that have been achieved. These measures are made up
of:
A) Cut or eliminated items resulting in one-time or on-going savings
B) "Avoided Costs" resulting in one-time or on-going savings
C) Increase in net revenues from sources other than rate increases
4. FISCAL IMPACT
Many of these measures were already built into the FY10-FY11 Budgets. The overall
affect on rates from these cost cutting measures are 8% for electric and 7% for water.
5. RECOMMENDATION
Receive and comment on this report.
Mary Ch ano Michael D. Holley
Administrative Services Manager General Manager
COST CUTTING MEASURES ACHIEVED IN FY08-09 Electric Dept Water Dept One-time&On-going Avoided Cost Increased
Savings Savings Total Savings Savings Savings Revenue
Personnel
Mapping Inern position not filled 47,000 46,000 93,000 93,000
Electric Groundman position not filled 87,000 87,000 87,000
Electric Technician position not filled-attrition 134,000 134,000 134,000
Materials/Services
Property&liability insurance-changed carriers/improved focus 2009-10 12,403 12,403 24,806 24,806
Worker's compensation carrier-changed carriers/improved focus 2009-10 32,100 32,100 64,200 64,200
(Experience modifier dropped from 174%to 138%)
Changed from propane to natural gas at District building 2,703 2,703 5,406 5,406
Elimination of Teichert storage lease 1,050 1,050 2,100 2,100
Wellness program-6%medical insurance premium savings 40,532 40,532 81,064 81,064
Commodity pricing of motor vehicle fuels 6,946 6,946 13,892 13,892
Wire to Water investments-reduces water department use of electricity 24,515 24,515 24,515
Streamline procurement process-issue annual purchase orders-20%FTE 18,000 18,000 36,000 36,000
Surplus vehicles(6)sold at auction rather than bid-net revenue increase 1,235 3,570 4,805 4,805
Meter lid replacement(2009) 83,000 83,000 83,000
Purchase Power
Conservation items: EM&V results 975,000 975,000 975,000
Total FY08-09 $1,357,969 $270,819 $1,628,788 $566,983 $1,058,000 $4,805
ADDITIONAL COST CUTTING MEASURES PLANNED FOR FYI 0/11 Electric Dept Water Dept One-time&On-going Avoided Cost Increased
Savings Savings Total Savings Savings Savings Revenue
Personnel
Water Utility Manager position not filled-attrition 225,000 225,000 225,000
Work Order Accounting position temporarily eliminated 37,500 37,500 75,000 75,000
Materials/Services
Elimination of Teichert storage lease-full year savings 5,250 5,250 10,500 10,500
Changed from propane to natural gas at District building-full year savings 10,500 10,500 21,000 21,000
Carport cover-reduction in labor to clear snow off vehicles 20,000 20,000 40,000 40,000
Broadband lease 200,000 200,000 200,000
Street light abandonment 33,100 33,100 33,100
Buiding upgrade-replace boiler&other energy savings measures implemented 10,200 2,200 12,400 12,400
Reduce vehicle fleet&deferred purchases-use of vehicle pool 97,000 41,000 138,000 28,000 110,000
Meter lid replacement(2010) 83,000 83,000 83,000
Purchase Power
Power supply costs-negotiate agreement with CalPECO 50,500 50,500 50,500
Power supply costs-Energy efficiency savings due to water metering 100,000 100,000 100,000
Conservation items-TDPUD building energy savings 8,000 8,000 8,000
Total FY08-09 $472,050 $524,450 $996,500 $253,000 $493,000 $250,500
Total Savings FY08,FY09,FY10 $1,830,019 $795,269 $2,625,288 $818,983 $1,561,000 $265,305
%of FY10 Revenue 8% 7% 8%