04-23-2018 BPU RPT 13 - Laserfiche WebLink

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W A T T R F N F R G Y L RIVERSIDE PUBLIC UTILITIES .�19& Board Memorandum P U B L I C U T I L I T I E S BOARD OF PUBLIC UTILITIES DATE: APRIL 23, 2018 ITEM NO: 13 SUBJECT: CITY OF RIVERSIDE PUBLIC UTILITIES DEPARTMENT OPERATIONAL IMPROVEMENTS AND EFFICIENCIES ISSUE: Receive a report on the operational improvements and efficiencies that the City of Riverside Public Utilities Department has implemented in the last twelve months. RECOMMENDATION: That the Board of Public Utilities recommend that the City Council receive this report on the operational improvements and efficiencies the City of Riverside Public Utilities Department has implemented in the last twelve months. BACKGROUND: In preparation for the rate increase proposal, over the past year the Riverside Public Utilities Department (RPU) has thoroughly reviewed its operations and spending to maximize cost savings, operational efficiencies and the potential of non -ratepayer revenues. These cost savings, efficiencies and maximized revenues were factored into the recent rate proposals in order to minimize rate impacts. DISCUSSION: The RPU electric and water rate increase proposal reflects: • $4.5 million in Fiscal Year 2018/19 ($32.4 million projected over five years) in maximized non - ratepayer revenue, which includes increased transmission revenue, cap and trade revenue, excess renewable energy credit sales, scheduling services, water conveyance, wholesale water sales, and property lease revenue. • $4.1 million in Fiscal Year 2018/19 ($17.8 million projected over five years) in financial savings identified in the past year alone, which includes personnel, professional services, energy charges, greenhouse regulatory fees, water production costs, water treatment chemical costs, various maintenance costs, and miscellaneous other costs. • Additional operational efficiencies achieved in the past year, including elimination of vacant positions, evaluation of work units resulting in realignment of workforce development and communications, enhanced call center response, improved coordination with departments, and overtime management. Page 237