HomeMy WebLinkAboutAgenda Report - June 6, 2007 L-01AGENDA ITEM L-01
• CITY OF LODI
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AGENDA TITLE: Ordinance No. 1798 Entitled, "An Ordinance of the Lodi City Council Amending
Chapter 13.20, `Electrical Service,' by Repealing and Reenacting Section
13.20.210, Schedule EM, Relating to Mobile Home Park Service Rates"
MEETING DATE: June 6,2007
PREPARED BY: City Clerk
RECOMMENDED ACTION: Motion waiving reading in full and (following reading by title)
adopting the attached Ordinance No. 1798.
BACKGROUND INFORMATION: Ordinance No. 1798 entitled, "An Ordinance of the Lodi City Council
Amending Chapter 13.20, `Electrical Service,' by Repealing and
Reenacting Section 13.20.210, Schedule EM, Relating to Mobile
Home Park Service Rates" was introduced at the regular City
Council meeting of May 16, 2007.
ADOPTION: With the exception of urgency ordinances, no ordinance may be passed within five days of
its introduction. Two readings are therefore required — one to introduce and a second to adopt the
ordinance. Ordinances may only be passed at a regular meeting or at an adjourned regular meeting;
except for urgency ordinances, ordinances may not be passed at a special meeting. Id. All ordinances
must be read in full either at the time of introduction or at the time of passage, unless a regular motion
waiving further reading is adopted by a majority of all council persons present. Cal. Gov't Code§ 36934.
Ordinances take effect 30 days after theirfinal passage. Cal. Gov't Code§ 36937.
This ordinance has been approved as to form by the City Attorney.
FISCAL IMPACT:
FUNDING AVAILABLE:
RJ/imp
Attachment
councUcouncorn/ordinancel .doc
None,
None required.
City Clerk
APPROVED:
Bl g, City Manager
ORDINANCE NO. 1798
AN ORDINANCE OF THE LODI CITY COUNCIL AMENDING
CHAPTER 13.20,"ELECTRICAL SERVICE," BY REPEALING
AND REENACTING SECTION 13.20.210,SCHEDULE EM,
RELATING TO MOBILE HOME PARK SERVICE RATES
BE IT ORDAINED BYTHE LODI CITY COUNCILAS FOLLOWS:
SECTION 1. Lodi Municipal Code Section 33.20.210 is hereby repealed and reenacted to read as
follows:
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
$/kW h
Tier 1
Tier 2
Tier 3
Tier 4
Tier 5
( aB�ine)
(101-130% of
131-200% of
(201300% of
(Over 300$
(201-300% of
baseline)
baseline)
baseline
of baseline
$0.1420
$0.1450
$0.2235
$0.3180
$0.3300
Tier 1
Tier 2
Tier 3
Tier 4
Tier 5
(Baseline)
(101-130% of
331-200% of
(201-300% of
(Over 300$
baseline)
baseline)
baseline
of baseline
Beginning Tier
0
482
626
963
>1 ,443
Ending Tier
481
625
962
1,443
kWh/month
391
508
782
1,173
Tier 1
Tier 2
Tier 3
Tier 4
Tier 5
(Baseline)
(101-130% of
131-200% of
(201300% of
(Over 300%
baseline)
baseline)
baseline
of baseline
Beginning Tier
0
392
509
783
>1,173
kWh/month
Ending Tier
391
508
782
1,173
kW hlmonth
MARKET COST ADJUSTMENT (MCA):
A marketcost adjustment maybe 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 perkWh. The adjustmentamount perkWh will reflectamounts chargedthe Cityof 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, Discountand MCA.
SPECIAL CONDITIONS:
(a) This rate is available only for mobile home park master metering in service priorto March
31, 1989.
(b) It is the responsibility of the master -metered customer to notify the City Finance
Departmentwithin 15 daysfollowing anychange inthe numberof 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 premisesas 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 Customerwill submit an application, including
the tenant's unit number, to the Cityof Lodi Finance Department. The Cityof Lodi Finance
Departmentwill notify the master -metered Customer of the tenant's certification.
(e) Certificationwill be requiredto determine income eligibilityfor the SHARE program. Sub-
meteredtenants of the mastermetered Cityof Lodi Customer must sign a statement upon
application indicatingthatthe Cityof Lodi mayverifythe sub -mete red tenant's eligibilityat
anytime. The master -metered Customer, notthe City of Lodi, is responsiblefor extending
the SHARE program to tenants certified to receive them. If verification establishesthat 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.
(#) 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 thattenant
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 qualifyingtenant at
the applicable rates equivalentto Schedule ED, Residential SHARE Program Service. A
non -qualifying tenant shall be billed at the same rate that the City bills the park owner,
excepting the Master Meter/ Sub -Meter Discount.
(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.
(i) Mobile home park owners mustsubmittheir billingsto the Electric Utility Departmentsemi-
annuallyfor auditing to ensure compliancewith this section.
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FIXED INCOME DISCOUNT
Forthose customers who are on fixed incomes below $45,000 annuallyand 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.
SECTION 2. No Mandatory Duty of Care. This ordinance is not intended to and shall not be
construed or given effect in a manner which imposes upon the City, or any officer or employee
thereof, a mandatoryduty of care towards persons or properlywithin the City or outside of the City
so as to provide a basis of civil liability for damages, except as otherwise imposed by law.
SECTION 3. Severability. If any provision of this ordinance or the application thereof to any person
or circumstances z held invalid, such invalidityshall not affect other provisionsor applications of the
ordinance which can be given effectwithout the invalid provision or application. To this end, the
provisions of this ordinance are severable. The City Council hereby declares that it would have
adopted this ordinance irrespectiveof the invalidityof any particular portion thereof.
SECTION 4. All ordinances and parts of ordinances in conflict herewith are repealed insofar as
such conflict may exist.
SECTION 5. This ordinance shall be publishedpursuantto law and shall become effective 30 days
from the date of passage and adoption.
SECTION & This amended Schedule referenced above shall be effective on applicable electric
utility billings prepared by the City of Lodi on or after July 6, 2007, or the first date allowable under
State law.
Approved this 6"' day of June, 2007
h�
BOB JO ON
MAYOFV
ATTEST:
4A�N4DI JOHL
City Clerk
State of California
County of San Joaquin, ss.
I, Randi Johl, City Clerk of the City of Lodi, do hereby certify that Ordinance No. 1798 was
introduced at a regular meeting of the City Council of the City of Lodi held May 16,2007, and was
thereafter passed, adopted, and ordered to print at a regular meeting of said Council held June 6,
2007, by the following vote:
AYES COUNCIL MEMBERS— Hansen, Hitchcock, Katzakian, Mounce, and
Mayor Johnson
NOES: COUNCIL MEMBERS— None
ABSENT: COUNCIL MEMBERS — None
ABSTAIN: COUNCIL MEMBERS— None
further certifythat Ordinance No. 1798was approved and signed by the Mayor on the date of its
passage and the same has been published pursuant to law.
Approved to Form:
EN SC R
City Attorney
N
Randi Johl
From: Randi Johl
Sent: Wednesday, June 06,2007 11:16 AM
To: City Council
cc: George Morrow (Lodi EUD); Blair King; Steve Schwabauer
Subject: FW: Mobilehome Park Electric Rates - Ordinance - June 6 Hearing
Importance: High
Please note Mr. Morrow's response below to Mr. Baum.
_____Original Message -----
From: George Morrow (Lodi EUD)
Sent: Wednesday, June 06, 2007 7:32 AM
To: Blair King
Cc: Jim Krueger; Steve Schwabauer; Randi Johl
Subject: RE: Mobilehome Park Electric Rates - Ordinance - June 6 Hearing
Importance: High
I wanted to take a moment to respond to the three points raised by Mr.Baum below.
Issue 1: The proposed Ordinance reflects the motion made by the City Council at its last
meeting and is consistent with Staff's desire to provide the park owner's discount on an
average month basis rather than on a daily basis. (Note: The end result on an annualized
basis is identical for all practical purposes using either method.)
Issue 2: The proposed Ordinance reflects the motion made by the City Council at its last
meeting that an audit be performed by EUD on a twice a year basis (bi-annual or semi-
annual). While Staff had proposed a "biennial" audit (e. y, once every two years), a twice
a year audit is not opposed by Staff and has merit in that mistakes can be caught and
rectified on a more timely basis. Staff will issue guidelines to park owners related to
the scope and form of the semi-annual audit.)
Issue 3: The proposed Ordinance reflects the motion made by the City Council at its last
meeting. As Mr. Baum indicated, this issue is probably one of semantics. While it would be
possible to enhance the language to improve clarity/interpretation, Staff's interpretation
of the present Ordinance language is consistent with Mr. Baum's desired outcome, e.g. that
the park owner's may charge individual tenants using the same tier schedule contained in
the EM (or EA) rate tariff.
Consequently, EUD is comfortable moving forward with the second Ordinance reading. We do
intend, however, to make some general rate schedule "clean-up" changes sometime in the
near future and, as Sondra Huff indicated to Jeri McLees, this would be a good opportunity
to clarify EM tariff language.
Please let me know if I can provide any further thoughts.
____-Original Message -----
From: Randi Johl
Sent: Tuesday, June 05, 2007 7:20 PM
To: 'jeriqeg'
Cc: Blair King; Jim Krueger; George Morrow (Lodi EUD); Steve Schwabauer
Subject: RE: Mobilehome Park Electric Rates - Ordinance - June 6 Hearing
Thank you for your email. It was received by the City Council and forwarded to the
appropriate department(s) for information, response and/or handling.
Randi Johl, City Clerk
_____Original Message -----
From: "jerigeg" <jerigeg@comcast.net>
To: "Randi Johl" <rjohl@lodi.gov>; "Susan Hitchcock" <hitchcock@lodi.gov>; "Bob Johnson"
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<bjohnson@1odi.gov>; "JoAnne Mounce" <jmounce@lodi.gov>; "Phil Katzakian"
<pkatzakian@lodi.gov>; "Larry Hansen" <1hansen01odi.90v>
Sent: 6/5/07 4:17 PM
Subject: Mobilehome Park Electric Rates - Ordinance - June 6 Hearing
The issue of the Mobilehome Park electric charges will be before you tomorrow evening,
June 6. Unfortunately I am unable to attend the meeting but did want to share with you
some ongoing concerns - we are so close to a resolution but I fear that passage of the
ordinance currently proposed is going to cause unnecessary confusion, frustration and
place us, once again, in trying to follow the "letter" of the ordinance while being unable
to do so for several reasons. Although I know you are anxious to resolve this issue, it
seems to me that the City should want - most of all - that the ordinance passed be
correct, understandable by all and reflect the intent of the city Council and the City
Electric Department. The proposed ordinance does not do that.
As background, last week my business manager, Jeri McLees, received a copy of the draft
ordinance from the City Electric Department. She found what she considered three
discrepancies in the draft and immediately contacted Sondra Huff - Sondra concurred with
the concerns and indicated that she was proposing language to the City Attorney to clarify
the issues, and that she had no reason to believe that the suggestions would not be
accepted. Jeri left for the weekend and upon her return found that the language
discussed was not contained in the ordinance which is before you. She contacted Sondra on
the morning of June 4 and was advised a few hours later that any "changes would have to
come back as amendments (which 'we' (the City) would do at another meeting" and the
ordinance would be voted on June 6 as no changes could be made. Sondra went on to say
that the intention of the items discussed (between the Electric Department and the
parkowners) were in alignment (meaning that we were in agreement with what needed to be
said/done) .
Why proceed with passing an ordinance that we know must be amended? Why not wait and make
the corrections at the June 6 meeting and then vote on an ordinance that is clear and
understandable to all?
There are three problems with the current proposal - all of which can easily be fixed with
just verbiage changes. Those problems are:
1) the City Council agreed that the parkowners would receive the same
amount of discount as PG&E receives. However, as written there is a question as to how
this would be determined (a 12 month amount or an amount based on 365 days, as is used by
PG&E) .
2) the City Council agreed that there should be bi-annual (every two
years) audits of the parks' billings. The proposed ordinance says that the parks must
submit our "billings" semi-annually (every six months) for audit. This means that every
six months every bill for every mobilehome park resident in Lodi will have to reviewed by
management, confidential information removed/ redacted and then submitted to the City of
Lodi. The City Electric Department has told us in writing that they will not require
audits more than once every two years unless there was a problem - but as proposed, the
ordinance would require us to submit this information every six months. The proposal
doesn't tell us "when" (i,e., June, August, December, ??) but just states "semi-annually".
If we don't submit them we are in violation of an ordinance.
3) Of most significance is the language relating to the billing of our
residents. As I understand it, it was the City Council's intention that the residents of
mobilehome parks should be billed at the same rate as residents of site -built homes AND
that the City was going to ensure that the EA (residential rates) and the EM (mobilehome
park) rates were the same in the future. The proposed language however, says that an
individual non -qualifying resident (i.e., one not qualified for SHARE or other discounts)
must be billed at the same rate as the parkowner. It's a question of semantics but from a
practical standpoint it means that if the aggregate our bill for all of our residents
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remains at the Tier 1 level, then all of our residents would have to be billed at Tier 1
even if we had a resident who was using much more electricity and should be billed at
Tier 2 or 3. The City Electric Department has agreed that we need to modify the ordinance
so that it is very clear that each resident is to be billed at the tier their individual
consumption reaches, regardless of the tiers the park owner is billed at, and the park
owner would received the "per pad" discount outlined above. We agree with that alteration
BUT until altered our billing company would have to follow the "letter" of the law, not
the "intent".
We all know that the income to the City for the change in the EM rate is considerably less
per month than originally predicted and thus we believe that to wait just a short while to
get the proper amendments in place and agreed upon just makes good sense for all
concerned.
I urge you to direct the City Attorney to work with the City Electric Department to
prepare the appropriate correct language and then submit it to you for approval. That
would be the right decision for the mobilehome parkowners and park residents of Lodi.
Sincerely,
James W. Baum
baum209@hotmail.com
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