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Home My WebLink AboutItem 4.04 UtilityAuditExpAdjustmnt . , . CITY CLERK File # D~[Z][Q]-[6][Q] .-- AGENDA STATEMENT CITY COUNCIL MEETING DATE: (DECEMBER 12, 1995) SUBJECT: Budget Adjustment To Account For Unanticipated Utility Audit Expense: (Equitax) ~Report Prepared by: Paul S. Rankin, Assistant City Manager EXmBITS ATTACHED: 1. / Copy of Staff Report dated October 24, 1994 Providing An Informational Report On The Results of Utility Audit 2./ Budget Change Form RECOMMENDATIO~thorize the Budget change. FINANCIAL STATEMENT: The Agreement with Equitax approved by the City Council February 28, 1994, provides for the:firm to receive 50% of any refund. Therefore, 50% of the $27,748.24 PG&E refund will be paid to Equitax . DESCRIPTION: As previously reported to the City Council in Exhibit 1, Equitax identified potential rate savings by changing the rate schedule used on two PG&E electrical accounts. The agreement with Equitax provides ....that they are entitled to 50% of the savings achieved from such a change over a two ,:e;u- period. At the .. time the report was made to the City Council it was not anticipated that there would' be any refund by PG&E for prior years services. Due to the fact that the annual payments to Equitax were projected to be less than $2,500 per year the Budget was structured to expense these payments within the appropriate Department utility line item. Subsequent to the City Council report last year, Equitax has continued to investigate the establishment of the Swim Center electric service and the selected rate schedule. Based upon research and information supplied by Equitax, PG&E recently issued a refund to the City of $27,748.24 for prior years electrical service overpayment at the Swim Center. In accordance with the agreement with Equitax the City will be issuing a payment to Equitax representing 50% of the refund or $13,874.12. Due to the size of the payment Staff would not recommend showing the one-time expense in the Swim Center Utility line item. This would adversely affect historical analysis of this budget line item. Staffhas prepared a Budget Adjustment (Exhibit 2) which will provide an additional appropriation in the Administrative Services - Finance (Contract Services) line item for this additional expense. Since the revenue was not included in the adopted 1995/96 the Budget Change also reflect an increase in miscellaneous revenue. Staff recommends that the City Council approve the Budget Change and authorize the Mayor to execute the form. .~------------------~----------------------------------------------- COPIES TO: G\agcnda\agcndpsr.doc ITEM NO. M . ."" '. CITY OF DUBLIN AGENDA STATEMENT City Council Meeting Date: October 24, 1994 SUBJECT: Informational Report - Results of Utility Audit Report by: Public Works Director Lee Thompson EXHIBITS ATTACHED: Letter from Equitax RECOM1\1ENDATION;~ Receive report FINANCIAL STATEMENT: The City's agreement with Equitax provides that Equitax will receive 50% of any future savings which result from the audit for a period of two years. The estimated savings on the two affected accounts is ::!:$4,625 per year; therefore, Equitax would receive ::!:$2,313 per year. The payment to Equitax is to be made from the operating budgets for the individual utility accounts. DESCRIPTION: In February of 1994, the City Council approved an agreement with Equitax for an audit of the City's utility bills. The audit was performed on electric (pG&E), gas (Boron Access), and water and sewer (DSRSD) bills. The audit has now been completed, and . Equitax reports that our existing accounts were correct; however, Equitax is recommending changes in rate schedules for PG&E electric service to the Swim Center and Kolb Park. e:. The greatest amount of savings would be achieved for the Swim Center, estimated at $4,185 per year. The change being initiated is from an A-I rate schedule to A-lO. Both of these are commercial rates; however, the A-lO rate has only been available for installations such as the Swim Center for the last few years. A small amount of savings, estimated at $440 per year, would be achieved for Kolb Park by changing to an A-6 "time of use" schedule. "Time of use" rates are effective when the greatest use of energy takes place during "off-peak" hours. Since the main usage of electricity at Kolb Park is the lighting for the tennis courts, nearly all the usage takes place during off-peak hours. Staff had already changed the rate schedules for the Civic Center and Dublin Sports Grounds to "time of use" rates. As noted in the Financial Statement above, the estimated annual savings for these two accounts is $4,625. The City's agreement with Equitax provides that Equitax will receive 50% of the annual . savings for a period of two years. The payment to Equitax will take place after the utility bills have been received and will be calculated based on actual savings achieved. a:(9495) IoclaberlngSluarul e.. ~~-:~~!l:i--------~~:~~-~~~------------------------------. Ex H:cBIT .1- .. EGlUITAX' 90 GREAT OAKS BLVD. SUITE 204 . SAN .JOSE. CA 95119 408.578.7900 September 22, 1994 RE(~tVEi:' (' Cp ,) 6 19QJ 0!.- N I u. . Ginger Russell City of Dublin Public Works Department P.O. Box 2340 Dublin, CA 94568 PUn} i.... ... \ ',,", -,': ,- C c!'.... \-";. '.... ~ .-: Dear Ms. Russell: EQUITAX has essentially completed our audit and analysis work on your utility accounts and the results are summarized below. Enclosed are detailed analysis charts and graphs illustrating the effects of the changes we will be initiating for you. Your bills are remarkably clean considering the number of accounts involved. You obviously do an excellent job controlling and monitoring the utility expense. We are pleased to report the following savings: PG&E Electric: Modification to account DJN68 53303 yields $4,185 annual savings. Modification to account FJN20 40601 yields $440 annual savings. All other accounts audited were found to be correct. . As specified in our agreement (General provision 5), we need written authority to act on your behalf to initiate the above changes. Please copy the enclosed authorization form onto your letterhead, sign and return it to EQUITAX in the enclosed return reply envelope. As part of our continuing service to you, EQUITAX constantly reviews and evaluates utility rate changes, rule changes, and decisions made by the California Public Utilities Commission and how they affect your accounts. Should our analysis indicate such changes and decisions provide opportunities beneficial to you, we will move to assure that your costs are kept at a minimum. Feel free to contact Bob Neuhaus, Bob Lansburg, or me if you have any questions or we may be of further service. Sincerely, Cherry . encl. cc: B. Neuhaus B. Lansburg " ~ . " ... . City of Dublin . . . . . service Address: Kolb Park, Brighton Dr, Dublin CA Utility"Company: PG&E - Electric Account # FJN20 40601 JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOY DEC USAGE PROFILE KWH USED 1.523 1,645 1,667 1,400 1,226 933 933 1,192 1,190 1,523 1,523 1,523 COST COMPARISON BEFORE MONTHLY A VG KWH COST COST 5175 0.1149 5189 0.1149 5191 0.1146 5162 0.1157 5204 0.1664 5157 0.1683 $157 0.1683 5199 0.1669 5198 0.1664 5252 0.1655 5175 0.1149 $175 0.1149 AFTER MONTHLY A VG KWH COST COST 5171 0.1123 5184 0.1119 5186 0.1116 5159 0.1136 5131 0.1069 5103 0.1104 5103 0.1104 5128 0.1074 5128 0.1076 5159 0.1044 5171 0.1123 $171 0.1123 21-......'-4 MONTHLY SAVINGS 54 55 55 $3 573 554 554 571 570 $93 54 $4 JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOY DEC 280 250 240 220 200 180 150 140 120 100 80 50 '0 20 JAN rES MAR APA MAY JUN JUl Aue SEP OCT NOY DEe '\ / --rc V1 LC- <- +- r... _ ("" I, .) .. .1 City of Dublin . . , , . Service Address: 8157 Village PkwY Dliblln CA . Utility Company: PG&E - Electric ,Account # DJN6853303-4 .......... COST COMPARISON USAGE BEFORE AFTER PROFILE MONTHLY A VG KWH MONTHLY A VG KWH MONTHL Y KWH USED COST COST COST COST SA VlNGS JAN 6,800 5754 0.1109 5660 0.0971 594 'JAN. FEB 9.600 51,061 0.1105 $901 0.0939 5160 FEB MAR 12,720 51,403 0.1103 51,169 0.0919 5234 MAR APR 13,960 51,539 0,1102 $1.275 0.0913 $264 APR MAY 13,080 $2.101 0,1606 $1,667 0.1274 5434 MAY JUN 14,080 $2,261 0.1606 51,785 0.1268 5476 JUN JUL 15,800 $2,536 0.1605 51,994 0.1262 $542 JUL AUG 16.840 52.702 0.1605 $2,123 0.1261 5579 AUG SEP 14,480 52,325 0.1606 51,838 0.1269 $487 SEP OCT 13,560 52,178 0.1606 51,721 0.1269 5457 OCT NOY 14,320 51,579 0.1103 $1,305 0.0911 5274 NOY DEC 10,560 51,166 0.1104 $982 0.0930 $184 DEC Annual $21,605 0.1387 $4,185 Tolals COST COMPARISON 9"on ytl Alter 2.8 2.5 2.' 2.2 1.8 1.5 1.' t.2 0.8 0.5 0.' 0.2 JAN rES MAR APR MAY JON JUL AVe SEP OCT NOV DEe COST r\, ft - L ',,'1(':, \. -Iu A - 10 CITY OF DUBLIN BUDGET CHANGE FORM CHANGE FORM # .'-1 New Appropriations (City Council Approval Required): Budget Transfers: From Unappropriated Reserves From Budgeted Contingent Reserve (1080-799.000) Within Same Department Activity X From New Revenues Between Departments (City Council Approval Required) Other ~rrrr>>ift.l.nt$.$.fJlr;lt.JJUlJ.!t{1U\w.mUN!t!m~r:Ir:r@r:m:.!lllNj.lmmlm~mmHImQgl$.~~1tUUQIiJ.Hi.nc.OUltnt~rrr@I~:~rr:IWM:an8.1tf~fI~:: ............... .....................,................. ......................................................................................................................................................................................................................................................................... Name: Name: GEN FUND REVENUE MISCELLANEOUS REVENUE Account #: Account #: 001-1000-57-003 $ 27,748 Name: Name: Account #: Account #: Name: Name: l' U i'H) FINANCE CONTRACT SERVICES GENERAL Account #: Account #: 001-1040-740-000 $ 13,874 Name: Name: Account #: Account #: Noone: Name: .. , Account #: Account #: Name: Name: Account #: Account #: REASON FOR BUDGET CHANGE ENTRY: CITY RECEIVED UNANTICIPATED REVENUE FROM PG&E AS A ONE TIME ADJUSTMENT FOR SERVICE IN PRIOR YEARS. 50%,OF THE REFUND IS TO BE PAID TO EQUITAX PURSUANT TO AN AGREEMENT WITH.THE CITY. City Manager: Date: Signature . Mayor: Date: Signature Posted By: Date: jormslb"dgohng Signature tX.H~~l:T ~