HomeMy WebLinkAboutMinutes - September 25, 2001 SSCITY OF LODI
INFORMAL INFORMATIONAL MEETING
"SHIRTSLEEVE" SESSION
CARNEGIE FORUM, 305 WEST PINE STREET
TUESDAY, SEPTEMBER 25, 2001
An Informal Informational Meeting ("Shirtsleeve" Session) of the Lodi City Council was held Tuesday,
September 25, 2001 commencing at 7:02 a.m,
A. ROLL CALL
Present: Council Members — Hitchcock, Howard, Land, Pennino and Mayor Nakanishi
Absent: Council Members — None
Also Present: City Manager Flynn, City Attorney Hays and Deputy City Clerk Perrin
B. CITY COUNCIL CALENDAR UPDATE
Deputy City Clerk Perrin reviewed the weekly calendar (filed).
C. TOPIC(S)
C-1 "Proposed Peak Power Plant Site Tour'
The City Council, staff, members of the press, and members of the audience boarded the
City GrapeLine trolley in order to tour the proposed Peak Power Plant site located in the
industrial area west of Guild Avenue and north of Thurman Road.
Electric Utility Director Vallow explained that staff has been looking at three potential sites
for locating the City's Peak Power Plant: one is located across from General Mills, and the
other two are within the City's industrial area. Diagrams of the preferred 7-8 acre site,
located in the industrial area west of Guild Avenue and north of Thurman Road, were
distributed to the City Council (filed). The City of Lodi would own and operate the plant
and provide power to the State Department of Water Resources. The state needs power
and does not want to be caught in another energy shortage; therefore, it is very interested
in purchasing power (via a contract) from a municipally owned and operated power plant,
which would guarantee the state service at a reasonable cost.
The City would have the benefit of reliability, which is particularly important in economic
development, where the City would focus on attracting high-tech businesses that employ
a large number of skilled employees at a higher rate of pay.
In response to Mayor Pro Tempore Pennino, Mr. Vallow explained that, under this
contract with the state, the City would control 100% of the dispatching of utilities and own
the plant after 15 years. The plant would allow the City to be energy self-sufficient for 85-
90% of the hours per year, and it would be unnecessary for the City to import power.
When determining a location for a power plant, there must be a substation in which to
connect to as well as a fuel supply. In addition, the process to build a plant follows a
lengthy, convoluted schedule, and staff is working diligently to stay on course with this
timeline. The Council will soon be required to make two decisions: one of which is
concurrence on the project, the other pertains to requirements of the California
Environmental Quality Act (CEQA). The initial steps in this schedule involve obtaining an
Air Permit through the state and applying for a Use Permit with the Community
Development Department for the CEQA requirements. Because this process involves
several parties representing electric, gas, financial, and political interests, there is a sense
of urgency in this matter.
Mr. Vallow reported that Pacific Gas & Electric (PG&E) and Lodi Gas Storage serve as
two options for the City to purchase natural gas. There are transmission lines in place to
carry high-pressure gas, eliminating the need for compression on site. It would not be
practical to supply our own natural gas because of the cost involved and due to the fact
that the demand to buy this resource is not great.
Continued September 25, 2001
Mr. Vallow cautioned that the power crisis is far from over and in -fact may only be in the
beginning stages. We could be faced with the same energy problems two years from
now. With the Peak Power Plant, the City of Lodi would be one of the state's providers of
power. Under the contract, after the first three years, the output would belong to the City,
and after 15 years, the City would own the plant; however, control of the energy would be
the City's during the entire 15 years and thereafter as well. The contract is in the final
stages of preparation, and it is anticipated that it will come to Council in the very near
future. In addition, at the next Shirtsleeve Session, staff will discuss with Council the
financing options for the Peak Power Plant.
(NOTE: The balance of the meeting resumed at the Carnegie Forum.)
Council Member Howard expressed her agreement that the proposed Peak Power Plant
site is the ideal location because it is in an industrial area, is adjacent to the current
electrical services already in place, and it has the potential to connect with PG&E and
Lodi Gas Storage.
Electric Utility Director Vallow reiterated that this is a lengthy, involved process and things
could change at any time.
D. COMMENTS BY THE PUBLIC ON NON -AGENDA ITEMS
None.
E. ADJOURNMENT
No action was taken by the City Council. The meeting was adjourned at approximately 8:11 a.m.
ATTEST:
Jennifer M. Perrin
Deputy City Clerk
2
Mayor's ,c Council Member's Weedy Calendar
WEEK OF SEPTEMBER 25, 2001
Tuesday, September 25, 2001
7:00 a.m. Shirtsleeve Session
1. Proposed Peak Power Plant Site Tour (EUD)
5:30 p.m. Grand Opening and ribbon cutting of River's Edge Apartments, 505 Pioneer
Drive.
5:30 - 8,30 p.m. Nakanishi. Welcoming reception for new physicians to the Lodi Memorial
Hospital, Wine and Roses Cellar Room.
Wednesday, September 26, 2001
Reminder Hitchcock, Howard and Land. NCPA Annual Conference, South Lake
Tahoe, 9/26 -28.
3:00 - 5:00 p.m. SJC Office of Education Partnership for Tomorrow's celebration to honor
and recognize participation in School-to-Coreer, hosted by (and held (it)
Stockton Metropolitan Airport.
7:00 p.m. Library Town Hall Meeting to discuss the Library Facilities Master Plan,
Lodi Public Library — Bud Sullivan Community Room.
Thursday, September 27, 2001
Reminder Hitchcock, Howard and Land. NCPA Annual Conference, South Lake
Tahoe, 9/26 - 28.
5:30 p.m. Pennine. COG Meeting.
5:30 -8:30 p.m. Chamber Lodi Industrial Group Barbecue, Lodi Lake — Parson's Point.
Friday, September 28, 2001
Reminder Hitchcock, Howard and Land. NCPA Annual Conference, South Lake
Tahoe, 9/26 -28.
Saturday, September 29, 2001
6:00 p.m. An Evening at the Library, a celebration of the "Art of Story Telling."
Sunday, September 30, 2001
10:30 - 12:30 p.m. Land. 7th Day Adventist Church Pet Hobby Fair, 1240 S. Central (serving
as a judge).
11:00 - 3:00 p.m. Nakanishi and Pennine. Celebration on Central (Council will have a booth).
Monday, October 1, 2001
Disclaimer: This calendar contains only information that was provided to the City Clerk's oflce
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