HomeMy WebLinkAboutMinutes - January 23, 2007 SSCITY OF LODI
INFORMAL INFORMATIONAL MEETING
"SHIRTSLEEVE" SESSION
CARNEGIE FORUM, 305 WEST PINE STREET
TUESDAY, JANUARY 23, 2007
An Informal Informational Meeting ("Shirtsleeve" Session) of the Lodi City Council was held Tuesday,
January 23, 2007, commencing at 7:02 a.m.
A. ROLL CALL
Present: Council Members — Hansen, Hitchcock, Katzakian, Mounce, and Mayor Johnson
Absent: Council Members — None
Also Present: City Manager King, City Attorney Schwabauer, and City Clerk Johl
B. TOPIC(S)
B-1 "Options for Senior and Low Income Water and Wastewater Rate Discounts"
City Manager King briefly introduced the subject matter of senior and low income water and
wastewater rate discount options.
Deputy City Manager Krueger provided a PowerPoint presentation (filed) regarding water
and wastewater rate discount options. General bpics of discussion included Measure J,
availability of discount programs, history of discounts, customer analysis, options for
continuance and discontinuance, costs, regulatory matters, option for installing water
meters, potential rate reductions, and rate effects. Mr. Krueger also reviewed specifics
regarding the decision making process.
In response to Council Member Hansen, Mr. Krueger stated 21,250 customers do not
participate in any type of discount, 2,200 participate in some type of discount program,
10% of the 2,200 participate in the 10% percent discount program, and the balance of the
2,200 participate in the 20% discount program. Discussion ensued between Council
Member Hansen, City Manager King, and Deputy City Manager Krueger regarding the
possibility of additional eligible individuals who are currently not participating in the discount
program.
In response to Mayor Pro Tempore Mounce, Public Works Director Prima stated previous
suggestions for who will pay for water meter installation if lines are not retrofitted included
line payment by property owners, who may not necessarily be the actual customer, and
meter payment by the City. City Manager King stated the City Council has not set forth a
policy regarding retrofitting. Mr. King stated there are various options including, but not
limited to, action in conjunction with the water rates policy, an acceleration program for
water meter installation and retrofitting, and general fund usage because water meter
installation is not an expense continuing in perpetuity.
Discussion ensued between Mayor Johnson, Council Member Hansen, Council Member
Hitchcock, and City Manager King regarding the policy decision associated with water and
wastewater reductions, Measure J application, the amount of the discount, and water meter
installation considerations.
In response to Council Member Hansen, Deputy City Manager Krueger stated a comprised
position may be a reduction of the 20% discount b 10% with requirements staying the
same. Mr. Krueger stated the impact on the general fund would be approximately $127,000,
and customers receiving the discount will get an increase of approximately five dollars on
their utility bill.
Continued January 23, 2007
In response to Council Member Hitchcock, City Attorney Schwabauer stated Proposition
218, created in 2004, vias not retroactive. Mr. Schwabauer stated a similar but different
program existed prior to Proposition 218 passage. He stated reverting to the previous
program is not the prevailing view. Council Member Hitchcock requested additional research
regarding the same.
In response to Council Member Hansen, Deputy City Manager Krueger affirmed that the
administrative cost of providing a refund going back to November exceeds the actual
amount of the refund.
In response to Mayor Pro Tempore Mounce, Deputy City Manager Krueger stated the
discount is not for seniors alone, but anyone who meets the income requirements.
In response to Mayor Johnson, City Attorney Schwabauer stated the ethical consideration
is whether the City should continue offering a program in the face of public opposition. He
stated it is legal to fund the program through general fund because the funding is not
subject to Proposition 218. Mr. Schwabauer stated the only limitation is the money must
be spent for a public use and charitable uses are considered public uses.
In response to Council Member Hansen, Public Works Director Prima stated other cities in
the County offering a similar discount program include Escalon, Lathrop, Ripon, and Tracy.
He stated many other cities had electric discount programs and reiterated rates were not
raised to initially do the program.
In response to Mayor Johnson, City Manager King stated the matter will be coming back to
Council on February 7, 2007, as a part of the mid -year budget adjustments.
C. COMMENTS BY THE PUBLIC ON NON -AGENDA ITEMS
None
D. ADJOURNMENT
No action was taken by the City Council. The meeting was adjourned at 7:52 a.m.
ATTEST:
Randi Johl
City Clerk
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