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Home My WebLink AboutAgenda Report - August 4, 1982 (68)CITY COUNCIL MEETING AUGUST 41 1982 On motion of Mayor Reid, Snider second, Council, by the following vote denied the Claim for Money for Non -Payment of Bill filed by Pacifi.: Gas and Electric Company. Ayes: Council Member - Olson, Snider, and Reid 1. Noes: Council Member - Pinkerton Absent: Council Member - Murphy CITY COUNCIL HENRY A. CLAVES, Jr. T City Manager FRED M. REID. Mayer CITY O F L O j � T ALICE N. REEMCHE ROBERT G. MURPHY, Jl V .1L + t✓ -+L Mayor Pro Tempore CITY HALL. 121 WEST PINE STREET Cir Clerk EVELYN M. OLSON POST OFFICE BOX 320 RONALD M. STEIN JAMES W. PINKERTOK it. LOUT• CALIFORNIA 9S241 City Attorney JOHN R. (Randy) SNIDER (209) 334-5634 September 20, 1982 Mr. Nolan H. Daines Vice President Planning and Research Pacific Gas and Electric Company 77 Beale Street San Francisco, CA 94106 [rear Mr. Baines: Please be advised that the claim of Pacific Gas and Electric Company for money for nonpayment of bills which was received by this office July 30, 1982 was presented to the Lodi City Council at its regular meeting of August 4, 1982. _i The Council, by'motion action at that meeting, voted to deny the subject claim. Very truly yours, n Alice M. Rei &t City Clerk AMR: j j P11' PACIFIC GAS AND ELE�`I��2:ijC COMPANY _ lJf• 30 �!l c1 t 77 REALE. STREET • SAN FRANCISCO. CALIFORNIA 94106 • (4 15) 781 .4211 HOLAN H. ®AINES ALICE M. ►1E(I CHE n[s�o[wi Ci 1 Y C! EM wc[ _ ►V»w�wo♦woarsv..c+ CITY 0. L091 July 27, 1932 Mr. Fred M. Reid, Mayor City of Lodi P.O. Box 320 City Hall 221 West Pine Street Lodi, California 95241 Dear Mr. Reid: The City of Lodi has not paid $504,336.71 of its bill for the electric service provided 10 it by PGandE during May 1982. PGandE delivered the May bill to the City of Lodi c: June 17, 1982, and to the extent that it his not been paid, it is now delinquent. In his July 6. 1982, letter, Mr. David K. Curry of the City of Lodi attempted justify the city's refusal to pay for electric services provided to it by PGandE by claiming that the energy was supplied by the Norther,,, California Pc:Ter Agency ("NCPA") pursuant to a letter agreement between NCPA and the Western Area Power Administration ("WAPA") dated May 28, 1982. Under this arrangement WAPA purports to sell relatively inexpensive surplus hydroelectric power from the Pacific Northwest to NCPA. However, existing contracts between: WAPA and PGandE provide that such surplus hydroelectric power is purchased by PGandE. In effect, WAPA is attempting to sell energy to NCPA that rightfully belongs to PGandE, thus depriving PGandE customers of inexpensive power that is lawfully theirs. The WAPA/NCPA agreement is therefore illegal, and NCPA has no such energy to sell. The energy purchased by Lodi was bought from and transmitted by PGandE under their resale contract. As you know, such contract is also a tariff filed with the Federal Energy Regulatory Commission and has the force of law. Both the city and PGandE must abide by that tariff; the city cannot legally purchase Electricity or have it transmitted except under those terms and conditions prescribed by FERC. In Montana -Dakota Utility Co. v. Northwest Public Service Co. (1951) Mr. Fred M. Reid -2- July 27, 1982 341 U.S.C. 246, 251, the United States Supreme Court said that under the Federal Power Act, a customer "can clair. no rate as a legal right other than the filed gate, whether filed or merely accepted ti)y the Commission and not even a court can authorize commerce in :he commodity on other terms." We have reviewed the May bill and have determined to our satisfaction that it should not be adjusted downward as proposed by Mr. Curry. I am sure that you realize that your continued failure to pay that bill in .full would place an unfair burden on P%GandE's other customers. If you persist in your refusal to pay for the service we are rendering, we will have no choice but to institute appropriate proceedings to protect our other customers. In light of the above discussion, --le do not believe that your refusal to pay is bas�:d on a legitimate dispute as to the correctness of the May bil:!,within the meaning of the "Disputed Bills" section of the "ariff. (Original Volume No. 2, Sheet No. 26.) If, however, you believe that this section applies, we hereby give you notice of its provisions by the attached copy of it. Very truly yours, N. H. Daines cc: David K. Curry Utility Director PAC IF] C G,S n J ELI CTRlC CC r iv�Y FPC ELL CTM C TAR) FF Original 1'elume 14o. Two GENLr:.^l TERMS AND CUNDITIO:S 6. DISPUTFG BILLS A. Correctness of Bill Original Sheet No. 26 Superseding Sheet No. If the correctness of a bill is questioned or disputed by a customer, an explanation should be pro;nptly requested from the Company. If the bill is determined to be incorrect, the Company will issue a corrected bill in accordance with "Rendering and Payment of Bi :is" herain. B. Bill Review Procedure Wh6n the cus c-:er and the Co -:,.any fail to scree on the a n^:.nt cf the bill ane upDn review the Company has detert-ined to its sat=sfactien that the bill is correct, and the disputed bill is not paid within 15 dEys after date of presentation, the Cor:pany will explain to the c us to:-ne r I. That in lieu of paying the entire disputed bill, he r ---ay deposit with a mutually satisfactory escrow company, that portion of the amount claimted by the Cw.pany to be due which is in aispute. The balance shall be paid to the Company. 2. That checks or other forms of remittance for such deposit should be made payable to the escrow fund. 3. That service will not be discontinued for nonpayment of the disputed bill when deposit has been made with the escrow company pending the outcome of the dispute. 4. That •ailure of the customer to make such deposit within 15 days after the date upon which notice was given will warrant discontinu- ance of his service without further notice. 5. That if before resolution of the dispute -dditional bills becoe due which the customer wishes to dispute, he shall also deposit with the escrow company the disputed portions of the addition?1 amounts claimed by the Company to be due for such additional bills before they beca-.,e past due and shall pay the balance to the Company and that failure to do so will warrant discontinuance of his service. 1 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 is 19 20 21' 221 23 24 25+ 26 r RECEIVED Claim of 982 A 30 M 9" S PACIFIC GAS AND ELECTRIC COMPAx�, C)M. ) OFOR Claimant, AL T Y C� FOR MON BILLS CffY OF &W . Code 1 91`0 VS. ) CITY OF LODI, a municipal ) corporation. ) TO: MS. ALICE M. REIMCHE CLERK OF THE CITY OF LODI City Hall 221 West Pine Street Lodi, California 95241 PLEASE TAKE NOTICE that Pacific Gas and Electric C,')mpany ("PGandE"), whose principal place of business is located at 77 Beale Street, in the City and County of San Francisco, State of California, claims money from trie City of Lodi ("City"), a municipal corporation, in the amount, computed as of the date of presenting this claim, of $504,536.71, plus interest at the maximum rate permitted by law. Claimant entered into a written contract With the City on or about April 1, 1970, whereby the claimant agreed to sell and the City agreed to buy all the electricity required by the City for its own use and for resale to its customwrs. This contract has been amended in ways not relevant to this controversy. 0 r" 1 The April 1, 1970, contract is now, and at all 2 times herein mentioned was, in full force and effect. 3 Pursuant to said contract, during the month of May 4 1982, claimant delivered and sold its electric power and 5 energy to the City in the amounts demanded by the City. 6 As a consequence thereof the City became indebted 7 to claimant in the tGtal sum of $704,058.21. e Bills in this amount, copies of which are attached 9 hereto, were presented to the City on or about June 17, 10 1982. 1.1 Said bills are now past due, but the City has 12 unlawfully refused and failed to pay $504,536.71 of said 13 amount. Accordingly, claimant submits this claim pursuant 14 to the provisions of California Government Coda section 910 15 for the amount of said past due unpaid bills plus interest 16 at the maximum rate permitted by law from July 2, 1982. 17 To the best of claimant's information and belief, 18 the public employees responsible for the City's rsfusal and 19 failure to pay its debts to claimant are Henry A. Glaves, 20 David K. Curry, and Fred M. Reid. 21 Claimant is informed and believes that the City 22 will refuse to pay subsequent bills for electric power and 23 energy and that the City will incur further indebtedness to 24 claimant. Pursuant to Government Code section 910.2, each 25 regular bili or invoice for such continued sale of 26 /// -2- r 1 electricity, to the extent that it is not paid, shall 2 constitute an additional claim. 3 By presenting this claim, and any future claims, 4 PGandE does not concede ::hat it is required to file such 5 claim or claims, and does not intend to Waive any rights it 6 may have to have the issue adjudicated. 7 Please send all notices to: 8 Charles T. Van Deusen, Esq. Arthur L. Hillman, Jr., Esq. 9 John N. Frye, Esq. Joshua Bar Lev, Esq. 10 Shirley A. Sanderson, Esq. P.O. Box 7442 11 San Francisco, California 94120 12 Dated: July 27, 1982. 13 14 -- Attorney folClaimant 16 , PACIFIC GAS AND ELECTRIC COMPANY 17 18 19 20 21 22 23 24 �5 26 -3- IRC-7 tBO IEPacific Gas and E'lcctric (-umpa» 1• Li 7 COPIES b , L ' ZXFN2 49511-7 5 31 82 ZXF #7 CITY OF LODI XF N2 ATTN DA.'E CU,RY 49511-7 UTILITY DEPT 221 WEST PINE ST LODI CA 95240 VAR I OUS LOCAT I ONS PLEASE LODI CA 95240 PAY IVIS ��^ pG� AMOUNT -SSIHItStSt -t 211 Ple?se retur this po ior) tvi;!7 pavr,rrn; Errno entire blij when r»an� I payment ir- office. .._.........------ .............................-..---....._..........._....----......._......----•!a - ---•--._.__....-..._------------. '. MwM w1M.w0 .way.•.�t tMl.[1 '142 WEST PINE ST CITY OF LODI LOO, CA 95240 ATTN DAVE CURRY ;69-3535 VARIOUS LOCATIONS LODI CA 95240 Z?t7rM 49511-7 FPC SCHEDULE R I EXP—M MAY,1982 R IND PUR 'GAS b4*I0S.0WF1*94ct cttr►teM ANT to At Aomas T Mt Z MW TN\ $an star° AMOUNT iron To 00 O..a 1 o��s.n� 95 iia 4301 5:31 31 I ( 14229872 71 STATE SURCHARGE EXEMPT BILLING DEM 42154 CREATED DEM 42154 TOTAL CURRENT CHARGES 744067-88 PREV HI DEM 68161 PREVIOUS BALANCE j40177:15 PREV HI DEM MD .!G"J 5/28 PAYMENT--TH" YOU b10201. 2— ADJUSTMENTINTEREST 2227�Q • 9— TOTAL AM)UNT NOW DUE $688665.97 61.4062 BILL "WOOD �OArt� wjILL 0 I ►f�JAr THIS MONTH THIS YEAR►�V/Y�T THIS SILL iS NOW DUE AND PAYABLE 1+9X511-7 ell IPC -T taPtE Pacific Gas and Electric (umpan)- 7 COPIES iZXFN1 49511-9 15 31 82 1539224 CITY OF LODI XF NiF #8 ATTN DAVE DURRY UTILITY DEPT 49511-9 221 W PINE ST LOBI CA 95240 SILL MAgO DAYSoAILL ! p'jrif Diir 1 27 THIS MONTH THIS YEAR 31 L THIS MONTH LAST YEAR WT 61.44W 7rIISBILL ISIVOW LUEANDPAVACLE ZXFN1 49511-9 VARIOUS LOCAT195240 LODI PLEASE, PAY THIS I 15392.24 l 181 AMOUNT Please rcrurrr r'ti; portion vrrrh p,ay� �er.r - 5nr?c enure hill 1+.•nen making payment in office. 12 WEST PINE ST CITY OF LOW LODI CA 95240 ATTN DAVE CURRY 369-3535 VARIOUS LOCATIONS LODI CA 95240 EXP -M lZXFN1 49511-9 ND PWR MAY, 1982 �R -GAS MIWMSItDNI[AINCI tt1W(IN MITIA AtapNCf TWI[S MVA T»� 1[A • `soli;�9 AMOUNT �•aA to Oats Vna p.e�em (!7EEC 4;301 5:31 31 i 27268 149 3. 5 I STATE SURCFWRGE EXEMPT TOTAL CURRENT CHARGES 14963.85 PREVIOUS ak O CE 14701.80 ADJUSTMENT 4264.93- 05/28 PAYMENT -•THANK YOU 10000.00 - INTEREST 8.48 - TOTAL AMOUNT NOW DUE 15392.24 SILL MAgO DAYSoAILL ! p'jrif Diir 1 27 THIS MONTH THIS YEAR 31 L THIS MONTH LAST YEAR WT 61.44W 7rIISBILL ISIVOW LUEANDPAVACLE ZXFN1 49511-9