HomeMy WebLinkAboutAgenda Report - May 2, 2007 E-11 PHAGENDA ITEM E*r I I
AhCITY OF LODI
COUNCIL COMMUNICATION
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AGENDA TITLE: Set Public Hearing for May 16,2007 to introduce ordinance amending
Chapter 13.20, "Electrical Service," by amending Section 13.20.210 Schedule
EM (Mobile Home Park Service) to become effective July 1,2007 (EUD)
MEETING DATE: May 2,2007
PREPARED BY. Electric Utility Director
RECOMMENDED ACTION: Set a public hearing for May 16,2007 to consider changes to
Chapter 13.20, "Electrical Service," by amending Section 13.20.210
Schedule EM (Mobile Home Park Service) to become effective July
1,2007.
BACKGROUND INFORMATION: At its meeting of February 15,2006, the City Council held a public
hearing to "true up" electric rates for all customer classes. During
the presentation, it was noted that the rates being charged mobile
home residentswere substantially lowerthan those of customers residing in other types of residential
homes. This rate disparity appears to be the result of staff misunderstanding the direction received
during rate discussions at Council meetings in late 2005.
At that time, staff recommended a Market Cost Adjustment (MCA) for Mobile Home Park Service (EM
Schedule) of $.0698. Council was not comfortable with what could be as much as an 80% increasefor
Schedule EM (which had been exempt from the MCA prior to this time), and the MCA for EM was set at
$.0071. In addition, mobile home park owners remained on the `old" two-tier EM Schedule at a total
electric rate significantly lower (10.70/kWh vs. 15.7$/kWh) than the Residential Service (EA Schedule)
rates. Priorto the rate adjustments approved in December 2005, rates for mobile home park owners
were within approximately 5% of the rates for other residential customers.
There are six mobile home parks, with a total of 499 pads being served by Lodi Electric Utility. Mobile
home park owners (master -metered) are billed on the EM rate schedule, they then bill their sub -metered
tenants on the applicable rate schedule (EA, Residential SHARE Service ED) and apply any entitled
discounts. Residents of mobile home parks are eligible for the same rates and discounts as "traditional'
residential customers.
In checking with the six parks in Lodi, staff found there is some variability in the rates charged by the
mobile home park rate structure. We found that four parks (414 pads) are charging their tenants at the
EA residential rate (about 5¢ per kilowatthour over the EM rate. The other two parks (76 pads) are using
the EM (mobile home park) rate schedule to bill their tenants.
Currently, Mobile Home Park Service (EM) includes a discount of $8.13 per month for each occupied
mobile home park unit wired for service. This discount provides recovery by mobile home park owners
for their costs of owning, operating and maintaining their electric sub metered system. Other energy
APPROVED:
it King, City Manager
Set Public Hearing for May 16, 2007 to Introduce ordinance amending Chapter 13.20, "Electrical Service," by amending
Section 13.20.210 Schedule EM (Mobile Home Park Service) to become effective July 1,2007 (EUD)
May 2,2007
Page 2 of 2
providerswithin our area that offer a mobile home park service rate allow park owners a discount of
$0.37925 per day or approximately $11.38/month per occupied unit.
Implementation of the proposed EM schedule will result in the park owner paying the same rate as they
bill their residents (less the pad discount). In the four parks that are currently using Schedules EA and
ED for billing, the end-use customer will see no change. In the two parks which have been billing using
Schedule EM, the owner and the end-use customer will see a price increase of about 45 percent.
The proposed Schedule EM incorporatesthe following:
• the mobile home rate structure (Schedule EM) includes the same five -tier structure and rate level
as other residential services (Schedule EA and ED);
• park owners on the EM rate would pass along all applicable rate discounts (including SHARE,
Medical Rider, Combined Medical Rider and SHARE, and Fixed Income Discount); and
• the discount to mobile home park owners would be aligned with that of other energy providers in
our area, increasingfrom $8.13 per occupied pad per month to $11.38 per month per occupied
pad.
The rate being recommended would replicate the five -tier schedule adopted for all other residential users
Attached are the proposed EM Schedule, the current EM Schedule and the current EA Schedule for
information.
FISCAL IMPACT: The impact & changing from the current EM Schedule to the proposed five -tier EM
Schedule is estimated to result in additional revenueof approximately $150-200
thousand per year.
FUNDING: Not Applicable.
. j(L1`,VnlkAAQ �Aj
gorge F. Morrow
Electric Utility Director
Prepared By: Sondra Huff, Senior RateAnalys
GFM/SHAst
Attachments (3)
•
CITY OF LODI
ELECTRIC UTILITY DEPARTMENT
SCHEDULE EM
MOBILE HOME PARK SERVICE
APPLICABILITY:
This schedule is applicable to service supplied to mobile home parks through one meter and sub -
metered to all individual mobile home units.
RATES:
MinimumCharge.................................................................................$5.00
Energy Charge is by Tier of kWh usa e:
$/kWh
Tier 1
Tier 2
Tier 3
Tier 4
Tier 5
(Baseline)
(101-130% of
131-200% of
(201-300% of
(Over 300% of
(201-300% of
baseline)
baseline)
baseline
baseline
$0.1420
$0.1450
$0.2235
$0.3180
$0.3300
Summer (Mav through October) Enerav Tiers
Winter (November throuah Anril) Enerav Tiers
Tier 1
Tier 2
Tier 3
Tier 4
Tier 5
(Baseline)
(101-130% of
131-200% of
(201-300% of
(Over 300% of
baseline)
baseline)
baseline
baseline
Beginning Tier
0
482
626
963
>1,443
kWh/month
Ending Tier
481
625
962
1,443
kWh/month
Winter (November throuah Anril) Enerav Tiers
DISCOUNT:
Per number of occupied mobile home park units wired for service ................ $ 11.38
Canceling Ordinance No. 1772
EM -1/3
Effective July 1, 2007
Ordinance No.
Tier 1
Tier 2
Tier 3
Tier 4
Tier 5
(Baseline)
(101-130% of
131-200% of
(201-300% of
(Over 300% of
baseline)
baseline)
baseline
baseline
Beginning Tier
0
392
509
783
>1,173
kWh/month
Ending Tier
391
508
782
1,173
kWh/month
DISCOUNT:
Per number of occupied mobile home park units wired for service ................ $ 11.38
Canceling Ordinance No. 1772
EM -1/3
Effective July 1, 2007
Ordinance No.
SCHEDULE EM
MOBILE HOME PARK SERVICE
MARKET COST ADJUSTMENT (MCA):
A market cost adjustment may be included in each bill for service. The adjustment shall be the
product of the total kilowatt-hours (kWh) for which the bill is rendered times the adjustment amount
per kWh. The adjustment amount per kWh will reflect amounts charged the City of Lodi by various
suppliers of bulk power not covered in the above rates.
BILLING CYCLE CHARGE (MONTHLY BILL):
The Billing Cycle Charge is the higher of the Minimum Charge or the sum of the Customer Charge,
Energy Charge, Discount and MCA.
SPECIAL CONDITIONS:
(a) This rate is available only for mobile home park master metering in service prior to March 31,
1989.
(b) It is the responsibility of the master -metered customer to notify the City Finance Department
within 15 days following any change in the number of occupied mobile home park units wired
for service.
(c) Miscellaneous electric loads such as general lighting, laundry rooms, general maintenance,
and other similar use incidental to the operation of the premises as a multi -family
accommodation will be considered domestic use.
(d) To qualify for Single Household Alternative Rate for Energy (SHARE) the sub -metered tenants
of the master -metered City of Lodi Customer will submit an application, including the tenant's
unit number, to the City of Lodi Finance Department. The City of Lodi Finance Department
will notify the master -metered Customer of the tenant's certification.
(e) Certification will be required to determine income eligibility for the SHARE program. Sub -
metered tenants of the master metered City of Lodi Customer must sign a statement upon
application indicating that the City of Lodi may verify the sub -metered tenant's eligibility at any
time. The master -metered Customer, not the City of Lodi, is responsible for extending the
SHARE program to tenants certified to receive them. If verification establishes that the
SHARE tenant is ineligible, the tenant will be removed from the master -metered Customer's
qualified tenants and the City of Lodi may render corrective billings.
(f) An additional medical discount is available as described in Schedule MR, Residential Medical
Rider.
(g) The master -metered Customer shall not bill any sub -metered tenant more than that tenant
would be billed if that tenant were an individual customer of the City of Lodi. For a qualifying
Canceling Ordinance No. 1772
EM -2/3
Effective July 1, 2007
Ordinance No.
SCHEDULE EM
MOBILE HOME PARK SERVICE
SHARE tenant, the master -metered Customer shall bill the qualifying tenant at the applicable
rates equivalent to Schedule ED, Residential SHARE Program Service. A non -qualifying
tenant shall be billed at the applicable rates equivalent to Schedule EA, Residential Service.
(h) The master-meter/sub-meter rate discount provided herein prohibits further recovery by
mobile home park owners for the costs of owning, operating and maintaining their electric sub -
metered system.
FIXED INCOME DISCOUNT:
For those customers who are on fixed incomes below $45,000 annually and who are over 62
years of age, and do not qualify for any other discount, a discount of 5% shall apply to the
electric bill. Procedures as to qualification will be established by the Electric Utility
Department.
Canceling Ordinance No. 1772
EM -3/3
Effective July 1, 2007
Ordinance No.
•
CITY OF LODI
ELECTRIC UTILITY DEPARTMENT
SCHEDULE EM
MOBILE HOME PARK SERVICE
APPLICABILITY:
This schedule is applicable to service supplied to mobile home parks through one meter and sub -
metered to all individual mobile home units.
RATES:
CustomerCharge............................................................................................ $ 4.87
Energy Charge:
Summer (May 1 through October 31)
First 440 kWh, per kWh............................................................................... .10197
Over 440 kWh, per kWh............................................................................... .14025
Winter (November 1 through April 30)
First 400 kWh, per kWh............................................................................... .10197
Over 400 kWh, per kWh............................................................................... .14025
MINIMUM CHARGE:
AllkWh, per kWh......................................................................................... .05000
DISCOUNT:
Per number of occupied mobile home park units wired for service ................ $ 8.13
MARKET COST ADJUSTMENT (MCA):
A market cost adjustment may be included in each bill for service. The adjustment shall be the
product of the total kilowatt-hours (kWh) for which the bill is rendered times the adjustment amount
per kWh. The adjustment amount per kWh will reflect amounts charged the City of Lodi by various
suppliers of bulk power not covered in the above rates.
Canceling Ordinance No. 1693
EM -1/2
Effective June 1, 2006
Ordinance No. 1772
SCHEDULE EM
MOBILE HOME PARK SERVICE
BILLING CYCLE CHARGE (MONTHLY BILL):
The Billing Cycle Charge is the higher of the Minimum Charge or the sum of the Customer Charge,
Energy Charge, Discount and MCA.
SPECIAL CONDITIONS:
(a) This rate is available only for mobile home park master metering in service prior to March 31,
1989.
(b) It is the responsibility of the master -metered customer to notify the City Finance Department
within 15 days following any change in the number of occupied mobile home park units wired
for service.
(c) Miscellaneous electric loads such as general lighting, laundry rooms, general maintenance,
and other similar use incidental to the operation of the premises as a multi -family
accommodation will be considered domestic use.
(d) To qualify for Single Household Alternative Rate for Energy (SHARE) the sub -metered tenants
of the master -metered City of Lodi Customer will submit an application, including the tenant's
unit number, to the City of Lodi Finance Department. The City of Lodi Finance Department
will notify the master -metered Customer of the tenant's certification.
(e) Certification will be required to determine income eligibility for the SHARE program. Sub -
metered tenants of the master metered City of Lodi Customer must sign a statement upon
application indicating that the City of Lodi may verify the sub -metered tenant's eligibility at any
time. The master -metered Customer, not the City of Lodi, is responsible for extending the
SHARE program to tenants certified to receive them. If verification establishes that the
SHARE tenant is ineligible, the tenant will be removed from the master -metered Customer's
qualified tenants and the City of Lodi may render corrective billings.
(f) The master -metered Customer shall not bill any sub -metered tenant more than that tenant
would be billed if that tenant were an individual customer of the City of Lodi. For a qualifying
SHARE tenant, the master -metered Customer shall bill the qualifying tenant at the applicable
rates equivalent to Schedule ED, Residential SHARE Program Service. A non -qualifying
tenant shall be billed at the applicable rates equivalent to Schedule EA, Residential Service.
Canceling Ordinance No. 1693
EM -2/2
Effective June 1, 2006
Ordinance No. 1772
CITY OF LODI
ELECTRIC UTILITY DEPARTMENT
SCHEDULE EA
RESIDENTIAL SERVICE
APPLICABILITY:
This schedule is applicable to single-phase domestic power service in single-family and multi -family
dwellings separately metered by the City including those on discontinued all electric rate schedule, EE.
RATES:
MinimumCharge.................................................................................$5.00
Tier 1
Tier 2
Energy Charge is by Tier of kWh usage:
Tier 4
Tier 5
(Baseline)
Tier 1
Tier 2
Tier 3
Tier 4
Tier 5
(Baseline)
(101-130% of
131-200% of
(201-300% of
(Over 300% of
0
482
baseline)
baseline)
baseline
baseline
$/kWh
$0.1420
$0.1450
$0.2235
$0.3180
$0.3300
Summer (Mav throuah October) Enerav Tiers
Winter (November throuah Aoril) Enerav Tiers
Tier 1
Tier 2
Tier 3
Tier 4
Tier 5
(Baseline)
(101-130% of
131-200% of
(201-300% of
(Over 300% of
baseline)
baseline)
baseline
baseline
Beginning Tier
0
482
626
963
>1,443
kWh/month
Ending Tier
481
625
962
1,443
kWh/month
Winter (November throuah Aoril) Enerav Tiers
MARKET COST ADJUSTMENT (MCA):
A Market cost adjustment may be included in each bill for service. The adjustment shall be the product
of the total kilowatt-hours (kWh) for which the bill is rendered times the adjustment amount per kWh.
The adjustment amount per kWh will be calculated to reflect amounts charged the City by various
suppliers of bulk power not covered in the above rates.
Canceling Ordinance No. 1718 Effective June 1, 2006
EA -1/2 Ordinance No. 1772
Tier 1
Tier 2
Tier 3
Tier 4
Tier 5
(Baseline)
(101-130% of
131-200% of
(201-300% of
(Over 300% of
baseline)
baseline)
baseline
baseline
Beginning Tier
0
392
509
783
>1,173
kWh/month
Ending Tier
391
508
782
1,173
kWh/month
MARKET COST ADJUSTMENT (MCA):
A Market cost adjustment may be included in each bill for service. The adjustment shall be the product
of the total kilowatt-hours (kWh) for which the bill is rendered times the adjustment amount per kWh.
The adjustment amount per kWh will be calculated to reflect amounts charged the City by various
suppliers of bulk power not covered in the above rates.
Canceling Ordinance No. 1718 Effective June 1, 2006
EA -1/2 Ordinance No. 1772
SCHEDULE EA
RESIDENTIAL SERVICE
BILLING CYCLE CHARGE (MONTHLY BILL):
The billing cycle charge is the higher of the sum of the Minimum Charge and the MCA or the sum of the
Energy Charge and the MCA.
SPECIAL CONDITIONS:
(a) When a business or commercial establishment is conducted in conjunction with a residence and
both are measured through one meter, this rate does not apply.
(b) This rate does not apply to service used for common area and facilities in multi -family dwellings.
(c) An additional first block medical quantity is available as described in Schedule MR, Residential
Medical Rider.
FIXED INCOME DISCOUNT:
For those customers who are on fixed incomes below $45,000 annually and who are over 62 years of
age, and do not qualify for any other discount, a discount of 5% shall apply to the electric bill.
Procedures as to qualification will be established by the Electric Utility Department.
Canceling Ordinance No. 1718 Effective June 1, 2006
EA -2/2 Ordinance No. 1772
Please immediately confirm receipt
of this fax by calling 333-6702
CITY OF LODI
P.0.BOX 3006
LODI, CALIFORNIA 95241-1910
ADVERTISING INSTRUCTIONS
SUBJECT PUBLIC HEARINGTO CONSIDER ORDINANCE AMENDING §13.20.210,
SCHEDULE EM (MOBILE HOME PARK SERVICE), TO BECOME
EFFECTIVE JULY 1,2007
PUBLISH DATE: SATURDAY, MAY 5,2007
TEAR SHEETS WANTED: Three (3) please
SEND AFFIDAVIT AND BILL TO: RANDI JOHL, CITY CLERK
City of Lodi
P.O. Box 3006
Lodi, CA 95241-1910
DATED: THURSDAY, MAY3,2007
ORDERED BY:
JqVNIFER M PERRIN,,CMC
DLIPLTYCIT CLERK
formsladvi ns,doc
RANDI JOHL
CITY CLERK
DANA R. CHAPMAN
ADMINISTRATIVE CLERK
DECLARATION OF POSTING
PUBLIC HEARING NOTICETO CONSIDER ORDINANCE AMENDING §13,20.210,
SCHEDULE EM (MOBILE HOME PARK SERVICE),
TO BECOME EFFECTIVE JULY 1,2007
On Friday, May 4,2007, in the City of Lodi, San Joaquin County, California, a Public
Hearing Notice to consider ordinance amending §13.20.210, Schedule EM (Mobile
Home Park Service), to become effective July 1, 2007 (attached and marked as Exhibit
A), was posted at the following locations:
Lodi Public Library
Lodi City Clerk's Office
Lodi City Hall Lobby
Lodi Carnegie Forum
declare under penaltyof perjurythat the foregoing is true and correct.
Executed on May 4,2007, at Lodi, California.
J IFER If PERRIN. CMC
66PUTY CITY CLERK
N:1Administration\CL8RKT,orms\DECPOSTEUD.DOC
ORDERED BY:
RANDIJOHL
CITY CLERK
DANA R. CHAPMAN
ADMINISTRATIVE CLERK
CITY OF LODI LDate:
ICE OF PUBLIC HEARING
May 16,2007
Carnegie Forum305 West Pine Stree4Lodi7:00 p.m.
For information regarding this notice please contact:
Randi Johl EXH
ISIT
City Clerk
Telephone: (209) 333-6702
NOTICE OF PUBLIC HEARING
NOTICE IS HEREBY GIVEN that on Wednesday, May 16, 2007, at the hour of
7:00 p.m., or as soon thereafter as the matter may be heard, the City Council will
conduct a public hearing at the Carnegie Forum, 305 West Pine Street, Lodi, to
consider the following matter:
a) Introduction of an ordinance amending Chapter 13.20, "Electrical
Service," by amending §13.20.210, Schedule EM (Mobile Home Park
Service), to become effective July 1, 2007
Information regarding this item may be obtained in the Electric Utility
Department, 1331 South Ham Lane, Lodi, (209) 333-6762. All interested
persons are invited to present their views and comments on this matter. Written
statements may be filed with the City Clerk, City Hall, 221 West Pine Street,
2'd Floor, Lodi, 95240, at any time prior to the hearing scheduled herein, and oral
statements may be made at said hearing.
If you challenge the subject matter in court, you may be limited to raising only
those issues you or someone else raised at the public hearing described in this
notice or in written correspondence delivered to the City Clerk, 221 West Pine
Street, at or prior to the close of the public hearing.
By Order of the Lodi City Council:
R ohl
City Clerk
Dated: May 2, 2007
D. Stephen Schwabauer
City Attorney
CLERKIPUSHEARINOTICE55Ncteud.doc V30107