HomeMy WebLinkAboutAgenda Report - February 21, 1990 (35)0
FROM:
COUNCIL
THE CITY COUNCIL
THE CITY MANAGER'S OFFICE
COMMUNICATION
COUNCIL MEETING DATE:
February 21, 1990
SUBJECT: MONTHLY PAYMENT TO EACH OF FIVE MOBILE HOME PARK LANDLORDS/OWNERS
FOR "IN LIEU" UTILITY SERVICE REQUIRED BECAUSE OF MASTER METERING.
RECOMMENDED ACTION: That the City Council authorize adoption of an adjusted
monthly payment level of $8.13 per mobile home space wired for service.
BACKGROUND INFORMATION: The "in lieu" payment is made to Kobile Home Park
Landlord/Owner and represents the costs the Cit avoids by not providing service
beyond the master meter to Park residents [tenants). These costs include
providing and maintaining the electrical system between the master meter and the
individual mobile homes, meter reading and billing services.
The "in lieu" payment is a best estimate of the costs the City avoids by not
providing these services directly.
A joint discussion of this payment took place during a City Council shirt -sleeve
session April 4, 1989. Representatives of the 5 Park Owners, their consultants
and their legal counsel discussed the detailed presentation by Electric Department
staff and a retained consultant who had developed much of the data.
The conclusion of that presentation was that the present level of payment ($7.34
per space per month) was reasonable, but should be re-examined around the first of
the year 1990.
Park Owners' consultants requested backup data on the staff/retained consultant
payment calculation, which was promptly transmitted. Staff requested several
items of data and a copy of Park Owners' billings to their tenants. Nothing has
ever been transmitted to us by the Park Owners or their consultants - either data
or further information requests.
Three methods of calculating the "in lieu" payment per occupied mobile home space
are as follows:
A. Detailed In -Depth Analysis of the Average Cost Lodi Would Have
Incurred.
I. Rigorous- method based on cost -of -service developed by Consulting
Engineer and presented to City Council April 4, 1989.
Result = $7.34 monthly.
CC/MHP/TXTU.OID
Therefore, Method II! payment of $8.13 is recommended. Even though this
rer,ommendation r lts i the highgist ca cul1 to ayme t am unt, justification
exists, because Ci�y sta�f saves time an eflor �y on, ma a review on a
minimum three-year period.
Henry J. RI
Electric Utility Director
Attachments (5)
cc: Assist. Electric Utility Director
Manager, Rates & Resources
CC/MHP/TXTU.01D
RATIO
used
and PROPORTION the landlord/owner :,'�"pavment
by
PG&E based on electric rate differences.
PRIVATE to
PG&E to reflect
(privately -owned)
cost differences between PG&E
and";Lodi,"-__."6. publicly'. . owned utility?.
"IN
UTILIT
2 4p
2. 95
$7. 34
validated by
consulting
99
Presented to
Lodi City
RIGOROUS':, Method
Malntenance�`:"�xpenspa
Customer Accounting,..
Capital Cbsts
i,
Tota I Costs
IN03
M
validated by
consulting
firm of'R.W. Beck
Presented to
Lodi City
Council, April :,4, `1-989
IN03
M
"IN LIEU" UTILITY
ROTIO and PROPORTI *1 Method
Resident Electric Bills*
Lodi =
$38.41
per
month
PG&E
_ $ 50.36
per
month
_io of above rates = 38.41/50-36 0.763
"I Li 'u" Payment used by PG&* _
Abp e payment adjusted
to L Qd i application
on annual average usage o� 5O0 kwh/rnonth
$10.25/month
x0.763
$ 7.82/month
A
E
Proposed Lodi monthly payment
per o--cupied mobile home space, wired for service
�Source: PG&E Rate staff and CPUC workpapers
LODE