HomeMy WebLinkAboutMinutes - August 1, 2000 SMLODI CITY COUNCIL
SPECIAL CITY COUNCIL MEETING
CARNEGIE FORUM, 305 WEST PINE STREET
TUESDAY, AUGUST 1, 2000
1. ROLL CALL
The Special City Council meeting of August 1, 2000 was called to order by Mayor Mann at
7:04 a.m.
Present: Council Members — Hitchcock (arrived at 7:05 a.m.), Land, Nakanishi, Pennino (left at
7:10 a.m.) and Mann (Mayor)
Absent: Council Members — None
Also Present: City Manager Flynn, City Attorney Hays and City Clerk Blackston
City Clerk Blackston reviewed the Mayor's and Council Member's Calendar for the week of
August 1, 2000.
2. REGULAR CALENDAR
a) Agenda item #B-1 entitled, "Electric Utility staff to proceed with preparation of
environmental documents on the transmission line".
NOTE: Council Member Pennino announced that he would be abstaining from discussion
and voting on this item due to a potential conflict of interest, and left at 7:10 a.m.
With the aid of overheads (copies of which are on file in the City Clerk's Office), Electric
Utility Director Vallow reported that the total Northern California Power Agency (NCPA)
pool savings for the period of March through June was $8.5 million, with a $3.5 million net
revenue. This represents a 35% savings to customers.
Mr. Vallow stated that the purpose of the Interconnect project is to increase reliability.
The objective is to achieve full transformer and transmission line redundancy and added
generation capacity from the City of Lodi, west to White Slough. The project would
interconnect the Lockeford substation and a new substation at the White Slough area.
These substations would be operated in parallel. Electric systems studies show that the
Interconnect project would improve 27 system elements.
Mr. Vallow noted that this issue came before the Council in 1998, but was stopped in
deference to getting more input from the community. The Chamber of Commerce
established the Alternative Power Committee, which consisted of the following members:
John Ledbetter, Vino Farms
Leon Zimmerman, Bank of Lodi
Sherry Cotta, Cotta Vineyards
Joe Hohenrieder, Luster -Cal
Dick Ehrler, Pacific Coast Producers
Dick Sanborn, Sanborn Chevrolet
Mike Phillips, Phillips Farms
Brad Lange, Lange Twins
The Alternate Power Committee reviewed 31 different alternatives. Their guiding principal
was that the project would have some measurable visual improvement to the area.
Mr. Vallow stated that the proposed $14.5 million project meets the objectives of the
Committee, by visually improving the corridor, adding landscaping, and placing the Pacific
Bell lines underground. He noted that the pole height would be 48 feet.
Continued August 1, 2000
In response to Mayor Pro Tempore Nakanishi, Mr. Vallow stated that it is not preferable to
underground the project. He explained that there are ten failures of an underground
system for every one failure of an overhead system.
Mr. Vallow emphasized that if the City is going to maintain the level of reliability that we
have come to enjoy and indemnify ourselves from transmission congestion, and the
associated prices, we need to move forward with this project. He noted the importance of
our ability to get our power home, without paying a premium for transmission service. As
an example, he noted that several days during the previous month, the cost of
transmission was equal to the cost of generation. He warned that we are at peril by
staying where we are at a single point of interconnection.
Community Development Director Bartlam explained that the next step would be to go
through the environmental review process. He recommended a mitigated negative
declaration. Once the public and environmental review processes are complete, the
Council can then give direction to move forward on the project.
Mr. Vallow indicated that if everything goes smoothly, the transmission line could be in
service by June 1, 2002.
Speaking on the matter were the following persons:
1. Nancy Ripkin, 14300 North DeVries Road, Lodi, reminded the Council of the
compromise the City offered at the Council meeting in 1991 to settle the dispute
that a group of west side landowners had over a steam generation plant. The
landowners suggested the City locate the plant closer to town, and had numerous
objections to the Environmental Impact Report. Former Electric Utility Director
Henry Rice offered a compromise at the meeting. If the landowners would drop
their objections to the siting of the plant, Lodi would agree not to build a
transmission line from the west. Ms. Ripkin had asked Mr. Rice how long the City
would agree to be bound by this offer, and he responded "forever". Ms. Ripkin
alleged that the proposed transmission line is in direct violation of the 1991
agreement. She stated that the Alternative Power Committee did not represent
the landowners and has no power to modify or void the agreement.
2. Steve Reeves, President of the Chamber of Commerce Board of Directors, 1532
East Woodbridge Road, Woodbridge, stated that the Chamber recognizes the
urgent need for reliable electrical power. Many of our manufacturers and
industrialists are already facing some substantial production and financial losses
from brownouts and blackouts. This project will provide more reliable power,
which will improve customer service. He warned that if it is not built and power
becomes Tess reliable it will effect the economy of Lodi because some industries
will either avoid Lodi, or in some cases, leave.
3. Leon Zimmerman, 3000 Park Oak Drive, Lodi, stated that over the last two years
we have lost an opportunity to provide an alternate source of power to the citizens
and the businesses in Lodi. The best route has been chosen and the additional
items with regard to the removal of the existing poles, landscaping, etc. have
mitigated many issues. He urged the Council to vote in favor of the project.
4. Economic Development Director Goehring reported that this project has
significant economic benefits to the community. Since 1994, sixteen new
businesses/industries have come into the City of Lodi, which have created over
700 jobs. The new system will enhance our ability to attract more sophisticated,
high tech businesses and diversify our economic base.
5. Richard Ripkin, 14300 North DeVries Road, Lodi, endorsed burying the power
line all the way along Highway 12 and expressed a concern that the project and
pole design, as presented today, will likely change before it is completed. He
further stated that if the City of Lodi had planned with PG&E, there would be more
than enough power from the east.
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Continued August 1, 2000
In response to Council Member Hitchcock, City Attorney Hays stated that the
project talked about in the 1990s was very different than what is being discussed
at this time. Further, he noted that the circumstances the City faces today are
significantly different than they were early in the 1990s, such as the possible
deregulation of the electric utility industry in California caused by AB1890.
In addition, Mr. Vallow pointed out that when Sacramento Municipal Utility District
(SMUD) shut down the Rancho Seco power plant, it threw the transmission area
into somewhat of a disarray.
6. Bob Johnson, 1311 Midvale Road, Lodi, pointed out that when this project first
began 8 to 10 years ago, the City of Lodi had an opportunity to gain unlimited
electricity from the western part of our area. However, as the Sacramento area
has grown, the opportunity to gain that electricity has become more and more
diminished. Highway 12 is a public utility corridor, and it is designed to handle
this project. He urged the Council to move ahead on the project.
Council Member Land recounted some of the changes that have occurred during the past
10 years: 1) Lodi now has 765 thousand acres of grapes, 2) deregulation of electricity
has put the City in a very competitive mode, and 3) a 985 thousand square foot
warehouse was built by PCP, which relies on our reliability to provide them with electricity.
In addition, he noted that consumers are interested in a clean source of electricity,
reliability, and competitive rates.
MOTION:
The City Council, on motion of Council Member Land, Hitchcock second, directed staff to
commence with the environmental process necessary to design, construct, and operate a
60kV transmission project by the following vote:
Ayes: Council Members — Hitchcock, Land, Nakanishi and Mann (Mayor)
Noes: Council Members — None
Absent: Council Members — None
Abstain: Council Members — Pennino
Mayor Pro Tempore Nakanishi commented that it is too costly for underground lines.
Mayor Mann stated that we have a responsibility to every person who lives within the City
of Lodi to provide reliable power. PG&E has not been reliable and has made it clear that
they do not intend to invest money in the Lockeford substation, which would have
increased our reliability. It is prudent for the City of Lodi as a power supplier to our
citizens to provide an alternate route and alternate source of electricity. Placing the
transmission line underground is out of the question given the cost.
3. COMMENTS BY THE PUBLIC ON NON -AGENDA ITEMS
None.
4. ADJOURNMENT
There being no further business to come before the City Council, the meeting was adjourned at
8:25 a.m.
ATTEST:
Susan J. Blackston
City Clerk
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