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HomeMy WebLinkAboutMinutes - December 10, 1976 (4)103 The undersigned members of the Lodi City Council do hereby give their consent to the holding of a Special Meeting of the Lodi City Council at the City Hall on December 10, 1976 at 4:00 p.m. for the purpose of holding an Executive Session relative to possible litigation regarding Pacific Gas and Electric. Said Executive Session will be followed by a short public meeting to announce conclusions, if any, resulting from the Executive Session. Richard L. Hughes, 1Uyor W Iter Katnich, Mayor Pro Tempore Ted �Katzaki Councilman 7� lk�' IC2.'t"�.� E a M. Eh dt; eu an s W. Pinkerton, Jar. Councilman I�r4 SPECIAL MEETING CITY COUNCIL, CITY OF LODI CITY HALL COUNCIL CHAMBERS DECEMBER 10, 1976 Pursuant to the foregoing written notice and written consent of the Lodi City Council, a special meeting of the City Council Of the City of Lodi was held beginning at 4:00 p.m., Friday, December 10, 1976 in the City Hall Council Chambers. P. G. &E. The Lodi News -Sentinel, the Stockton Record, Life DISPUTED and Times Magazine, Lodi Cable T.V. , KCRA Tt V, CHARGES News, KCVR Radio Station were apprised in advance of the meeting by City Clerk Reimche and representa- tives of the media were present at this special meeting, ROLL CALL Present: Councilmen - Ehrhardt, Katnich, Katzakian, Pinkerton and Hughes (Mayor) Absent: Councilmen - None Also Present: City Manager Glaves, Assistant City Manager Glenn, Diregtor of Utilities Lewis, and City Clerk Reimche. Mayor Hughes stated that the purpgse of this special meeting, which was agreed to by all Councilmen who waived the 24-hour advance notice, was to review advice received from the City's Washington Attorney, George Spiegel, with respect to negotiations that ,' iyf Spiegel had been conducting with P. G. &E, in an attempt to settle the dispute that the City has over the charges that are contained in the City's October P.G,&E. bill. EXECUTIVE The City Council then recessed to Executive Session SESSION at 4:Z5 p. m. Upon request, the City Clerk was excused from attending the Executive Session by Mayor Hughes. The City Council reconvened from Executive Session at approximately 5:45 p. m. Upon reconvening from the Executive Session, Mayor Hughes reiterated the purpose for calling this special meeting of the City Council and gave a brief update on events which had led to this dispute. Mayor Hughes further apprised the Council that in the P, G. & E . Octob<: r bill to the City, in addition to the energy and demand charges, P. G. &E, has billed the City for the fuel cost adjustment charge in the amount of 1.37I�/kw=h. The corresponding rate that a retail P. G. &E. custorner outside the City Limits would pay for the same fuel cost adjustment charge through the California Public Utilities Commission would be .774�%kv,h, which is a difference of about .5970kwh between the fuel cost adjustment charge the City is be- ing asked to pay and that which the outside retail uper is being asr:ed to pay. It is therefore the recommenda, tion of the City's Special Counsel that the City pay the same rate that is in effect for the retail user outside the City Lirrlits or .774fi/kwh, and that the balance of -I- G Minutes of D3.cember 10, 1976, continued 10V The motion was seconded by Councilman Katzakian. Mr. E. O. Lightfoot, Manager, Pacific Gas and Electric Company, Lodi, who was in the audience addressed the Council stating P. G. &E, has two sets of rules to abide by - one set being with the Federal Power Commission anj the other with the California Public Utilities Commission and that the P. G. &E. is abiding with rates legally filed with the FPC and the PUC. Mr. Lightfoot added that he feels the City's problem is with the Federal Power Commission and not with P. G. &E. and that the City has P. G, &E, in the middle by not paying its bill. Mr. Lightfoot stressed that right now the P. G. &E, has a legally filed rate, therefore, it is his Company!s position that the entire P. G. &E. Octoher bill to the City is due and payable. Mr, Lightfoot also stated that the retail rates would soon reach equity with the wholesale rates when an expected retail -rate increase goes into effect in the Spring. The question was called for and Councilman Katnich's motion passed by unanimous vote. ADJOURNMENT Following additional comments by Council on the subject, Mayor Hughes adjourned the meeting at approximately 6:30 p, m. on motion of Councilman Ehrhardt, Katnich second. Attest: ALICE M. EIVI CITY CLERK the fuel adjustment cost charge billed to the City by P. G. &E. for October be considered to be in dispute and be withheld and that P. G. &E, amount be deposited in a segregated bank DISPUTED account. CHARGES (Continued) A lengthy Council discussion followed with Councilman Katnich making a motion to direct Staff tc compute P. G. &E.'s fuel adjustment cost charged to retail customers outside the City limits as compared to fuel adjustment cost charges to the City of Lodi and at the next regular Council meeting to be held Wednesday, December 15, 1976 when the Council has had an opportunity to review these compu- tations, a decision can be made on a course of action to be taken that would be in compliance as set forth in the letter received from P. G, &E, dated December 9, 1976. The motion was seconded by Councilman Katzakian. Mr. E. O. Lightfoot, Manager, Pacific Gas and Electric Company, Lodi, who was in the audience addressed the Council stating P. G. &E, has two sets of rules to abide by - one set being with the Federal Power Commission anj the other with the California Public Utilities Commission and that the P. G. &E. is abiding with rates legally filed with the FPC and the PUC. Mr. Lightfoot added that he feels the City's problem is with the Federal Power Commission and not with P. G. &E. and that the City has P. G, &E, in the middle by not paying its bill. Mr. Lightfoot stressed that right now the P. G. &E, has a legally filed rate, therefore, it is his Company!s position that the entire P. G. &E. Octoher bill to the City is due and payable. Mr, Lightfoot also stated that the retail rates would soon reach equity with the wholesale rates when an expected retail -rate increase goes into effect in the Spring. The question was called for and Councilman Katnich's motion passed by unanimous vote. ADJOURNMENT Following additional comments by Council on the subject, Mayor Hughes adjourned the meeting at approximately 6:30 p, m. on motion of Councilman Ehrhardt, Katnich second. Attest: ALICE M. EIVI CITY CLERK