HomeMy WebLinkAboutAgenda Report - January 7, 1998 E-10CITY OF LODI COUNCIL• ' •
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AGENDA TITLE: Power Supply Contract (Secondary Service) between the City of Lodi and Apache
Plastics, L.P.
MEETING DATE: January 7, 1998
SUBMITTED BY: Electric Utility Director
RECOMMENDED ACTION: That the City Council authorize the City Manager to approve the attached
new Economic Development Power Supply Contract (Contract) between the
City of Lodi (City) and Apache Plastics, L.P. (Customer).
BACKGROUND: In return for the Customer's: 1) providing new employment and 2) improving
the City's industrial area by renovating and moving into one of the larger
manufacturing facilities which was under-utilized, the City and the Customer
originally desired service at primary voltage (12,000 volts). The Customer has since reassessed the impact of
his installing and maintaining the associated primary voltage transformers and other equipment and has now
requested that the City perform such services. The Electric Utility Department performs the above ancillary
services and absorbs the cost of transformer losses for secondary customer (less than 12,000 volts) for an
additional 4% higher fee over primary service electric rates and City ownership of the equipment. In this case,
transformer losses are compensated for by the original meter placement on the high voltage side of the
transformer. Only an additional 2% must be charged to compensate the City for the cost of equipment.
Except for now specifying delivery at secondary voltage, metering location and a 2% increase to $0.05100 per
kilowatt-hour from $0.05000 per kilowatt-hour, all other Contract terms remain as before.
A copy of the proposed Contract and a copy of the original are enclosed for reference.
FUNDING: Not Applicable
Alan N. Vallow
Electric Utility Director
Prepared by John Stone, Manager, Business Planning and Marketing
ANV/JS/Ist
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APPROVED
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CITY MANAGER
HAUSERIADMINUty Council\1997\010798cc1.wpd December 24, 1997
RESOLUTION NO. 98-04
A RESOLUTION OF THE LODI CITY COUNCIL AUTHORIZING THE
CITY MANAGER TO APPROVE ECONOMIC DEVELOPMENT POWER
SUPPLY CONTRACT WITH APACHE PLASTICS, L.P.
BE IT RESOLVED, that the Lodi City Council hereby authorizes the City
Manager to approve an Economic Development Power Supply Contract with Apache
Plastics, L.P.; and
FURTHER RESOLVED, that the City Manager and City Clerk are hereby
authorized to execute said contract on behalf of the City.
Dated: January 7, 1998
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I hereby certify that Resolution No. 98-04 was passed and adopted by the Lodi
City Council in a regular meeting held January 7, 1998 by the following vote:
AYES: Council Members - Land, Mann, Pennino, Warner and
Sieglock (Mayor)
NOES: Council Members - None
ABSENT: Council Members - None
ABSTAIN: Council Members - None
I►1.
ALICE M. REIMCHE
City Clerk
98-04