HomeMy WebLinkAboutMinutes - December 12, 1995 SM'-I.tp
CITY COUNCIL
SPECIAL CITY COUNCIL MEETING
CARNEGIE FORUM, 305 WEST PINE STREET
TUESDAY, DECEMBER 12, 1995
7:00 P.M.
ROLL CALL
Present: Council Members - Davenport, Pennino, Sieglock and Warner (Mayor)
Absent: Council Members - Mann
Also Present: City Manager Flynn, Finance Director McAthie, Electric Utility Director Vallow,
Assistant Electric Utility Director Hansen, Manager -Rates & Resources Stone,
Electrical Engineer Grandi, City Attorney Hays and City Clerk Perrin
2. ELECTRIC UTILITY DEPARTMENT FIVE-YEAR PLANNING REVIEW
City Manager Flynn introduced the subject and summarized the reason for this meeting. Council
Member Pennino asked City Attorney Hays to rule on whether or not Mr. Pennino had a conflict of
interest. City Attorney Hays determined that, based on his review of this matter, Council Member
Pennino did not have a conflict of interest.
Electric Utility Director Vallow introduced his staff present at the meeting and asked Electric Utility
Superintendent Lindstrom to update the City Council on the recent storm that passed through
Lodi. The City experienced a few power outages to which staff quickly responded. Most of the
outages were a result of the wind and the trees; however, the City came out well during this storm
thanks in part to the tree trimming program. City Manager Flynn applauded the Electric Utility
Department for its hard work during this storm.
Electric Utility Director Vallow presented the staff report to the City Council and how the next four
to six meetings will progress. The electric utility industry is changing and the future of it is
unknown; however, the City must anticipate what could happen and plan for these changes now.
During this and over the next few meetings Council and staff will discuss the following:
• Dividing the Electric Utility Department into two functional areas: Electric Services Division
and Business Planning and Marketing Division.
• Goals of the Electric Utility Department which include increasing revenue by 2% annually by
increasing business, not rates; decreasing utility power supply costs by 3 - 5% annually; and
eliminating the inspection and maintenance backlog.
• Fundamental questions:
What changes are occurring in the electric utility industry? The vision will need to be
reflected in the budget policies and an acceptable risk level will need to be determined
and how likely it is to occur.
• Who controls the changes? This will determine the time horizon and risk factors on the
market place. Our future roles will be determined to the extent to which we can exercise
control and authority.
• What are the likely outcomes? We will need to compare where we are to where we want
to be and to conduct scenario analyses.
• Are we prepared to operate in a new environment? The City will need to prepare by
tailoring the organization and guiding policies to be flexible and responsive to change and
creating an environment where risk embodied in change is minimized.
• Investigate building lower voltage transmission lines to the west of the City using only existing
facilities.
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Continued December 12, 1995
During these sessions, Council would also like to see the following matters included in the
discussions:
• An accurate inventory of equipment, facilities and backlog for inspection and maintenance;
• Customer service sessions with the public which would include water, electric and sewer
systems;
• The City's long-term relationship with the Northern California Power Agency (NCPA);
• Suggestions regarding electric utilities made by Council Member Sieglock at a previous City
Council meeting and by the Council during the budget sessions; and
A plan needs to be developed on how the infrastructure is to be replaced.
Overall it was stressed that deregulation should have a positive impact on the citizens of Lodi
because it keeps electric rates down and service up. We have the time to make the changes;
however, we do not have the time to waste.
FILE NO. CC -6, CC -21(b) AND CC -51(d)
3. ADJOURNMENT
There being no further business to come before the City Council, Mayor Warner adjourned the
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meeting at approximately 9:00 p.m.
ATTEST:
pnnifer M errin
ity Clerk
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