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Home My WebLink AboutAgenda Report - June 6, 2007 L-02AGENDA ITEM L-02 CITY OF LODI COUNCIL COMMUNICATION TM AGENDA TITLE: Ordinance No. 1799 Entitled, "An Ordinance of the Lodi City Council Amending Lodi Municipal Code Chapter 13.20, 'Electrical Service,' by Repealing Section 13.20.175, Schedule MCA — Market Cost Adjustment, and Enacting New Section 13.20.175, Schedule ECA — Energy Cost Adjustment" MEETING DATE: June 6,2007 PREPARED B Y City Clerk RECOMMENDED ACTION: Motion waiving reading in full and (following reading by title) adopting the attached Ordinance No. 1799. BACKGROUND INFORMATION: Ordinance No. 1799 entitled, "An Ordinance of the Lodi City Council Amending Lodi Municipal Code Chapter 13.20, 'Electrical Service,' by Repealing Section 13.20.175, Schedule MCA — Market Cost Adjustment, and Enacting New Section 13.20.175, Schedule ECA — Energy Cost Adjustment" 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 their final passage. Cal. Gov't Code§ 36937. This ordinance has been approved as to form by the City Attorney. FISCAL IMPACT None. FUNDING AVAILABLE: None required. City Clerk RJrmp Anachment APPROVED: / Bla�R 6, City Manager counciVcouncom/drdinance2. doc ORDINANCE NO. 1799 AN ORDINANCE OF THE LODI CITY COUNCIL AMENDING LODI MUNICIPAL CODE CHAPTER 13.20, "ELECTRICAL SERVICE," BY REPEALING SECTION 13.20.175, SCHEDULE MCA — MARKET COST ADJUSTMENT, AND ENACTING NEW SECTION 13.20.175, SCHEDULE ECA — ENERGY COST ADJUSTMENT BE IT ORDAINED BY THE LODI CITY COUNCILAS FOLLOWS: SECTION 1 . Lodi Municipal Code Section 13.20.175, "Schedule MCA—Market CostAdjustment," is hereby repealed in its entirety. SECTION2. Lodi Municipal Code Section 13.20.175, "Schedule ECA—Energy Cost Adjustment," is hereby enacted to read as follows: APPLICABILITY: This schedule is applicable to all electric customers served by the City of Lodi. Each customer shall pay the applicable rate plus an Energy Cost Adjustment (ECA) for each kilowatt-hour (kWh) delivered to the customer. The adjustment shall be the product of the total kilowatt-hours (kWh) for which the bill is rendered times the ECA amount per kWh. The purpose of the ECA is to adjust for increases/decreases to the City of Lodi's wholesale energycosts. This adjustment provides a mechanismto recover increased costs for wholesale energy or to lower collections when costs decrease belowthe base charge level. RATES: Effective July 1,2007, the ECA billing factor for any given month shall be calculated as follows: ECA= (a) + (b) - (c)(d+f) - (f) (Q) Where: (a) equals the amount the City of Lodi is actually charged by the Northern California Power Agency for the billing month, including adjustments for prior billing periods, less any third party revenue credits. (b) equals the City of Lodi's estimated costs related to the acquisition of wholesale power, both financial and physical, procured directly by the City for the billing month, including adjustments for prior billing periods. (c) equals the difference between actual retail energy sales and projected sales level for the month which is two (2) months priorto the billing month. (d) equalsthe ECA billing factor for the monthwhich istwo (2) months priorto the billing month. (e) equals the forecast of projected retail energy sales for the billing month. (f) equals the baseline energy cost for the City of $0.0831. The City of Lodi will recalculate the ECA each month, and resulting amount shall be automatically implementedfor bills rendered during the following billing month. The ECA shall not be discounted. ECA calculations will be presented to the Lodi Budget and Finance Committee for their ongoing audit verification. SECTION 3. The paragraphs referencinga Market CostAdjustment in the Rate Schedule Exhibits in: Lodi Municipal Code Sections 13.20.190, EA -Residential Service; 13.20.200, ED -Residential Share: 13.20.210, EM -Mobile Home Park Service; 13.20.235, ES -City Faci I ities Service; 13.20.240, GI-Group1; 13.20.250, G2-Group2; 13.20.260, G3 -Group 3; 13.20.270, G4-Group4; 13.20.280, G5 -Group 5;13.20.310, 11 -Group 5 Optional; shall be amended to read as follows: ENERGY COST ADJUSTMENT (SCHEDULE ECA): An Energy Cost Adjustment (ECA) may be included in each bill for service as provided in Section 13.20.175 Schedule ECA — Energy Cost Adjustment. SECTION 4. The reference to "EA Market Cost Adjustment" in the Exhibitto Lodi Municipal Code Section 13.20.220, MR -Medical Residential Discount" shall be amended to referto an "Energy Cost Adjustment (ECA) as provided in Section 13.20.175 Schedule ECA — Energy Cost Adjustment." Further, the second paragraph of the Section of the above Exhibit entitled "Applicability" shall be amended to read as follows: Master -metered customerswith qualifyingtenant(s) on Schedule EA are entitledto a discount of 25% per billing cycle (monthly bill) for each qualifying household or mobile home unit. Master -metered customers with q u al ifyi n gte n ant(s) on Schedule ED are entitled to to a discount of 5% per billing cycle (monthly bill) for each qualifying household or mobile home unit. SECTION 5. No Mandatow 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 personsor propertywithin the City or outside of the City so as to provide a basis of civil liabilityfor damages, except as otherwise imposed by law. SECTION 6. Severability. If any provision of this ordinance or the application thereof to any person or circumstances is 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 irrespective of the invalidity of any particular portion thereof. SECTION 7. All ordinances and parts of ordinances in conflict herewith are repealed insofar as such conflict may exist. SECTION 8. This ordinanceshall be published pursuantto law and shall become effective 30 days from the date of passage and adoption. SECTION 9. 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. 2 Approved this 6�h day of June, 2007 -;� Z/1 �� B0BJOHhjs6N MAYOR ATT T: RANDIJOHL 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. 1799 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, and MayorJohnson NOES: COUNCIL MEMBERS— Mounce ABSENT: COUNCIL MEMBERS— None ABSTAIN: COUNCIL MEMBERS— None I further certify that Ordinance No. 1799was approved and signed by the Mayoron the date of its Fpakge and the same has been published pursuantto law. N JOHL City Clerk 3