HomeMy WebLinkAboutMinutes - April 17, 2007 SSCITY OF LODI
INFORMAL INFORMATIONAL MEETING
"SHIRTSLEEVE" SESSION
CARNEGIE FORUM, 305 WEST PINE STREET
TUESDAY, APRIL 17, 2007
An Informal Informational Meeting ("Shirtsleeve" Session) of the Lodi City Council was held Tuesday,
April 17, 2007, commencing at 7:02 a.m.
A. ROLL CALL
Present: Council Members — Hitchcock, Katzakian, Mounce, and Mayor Johnson
Absent: Council Members — Hansen
Also Present: City Manager King, City Attorney Schwabauer, and City Clerk Johl
B. TOPIC(S)
B-1 "Update on Mobile Home Electric Rates"
PUBLIC COMMENTS:
co Jim Baum, owner of Shady Acres Mobile Home Park, requested the item be removed
from the agenda to allow mobile home owners to review the material and costs
associated with the same.
Mayor Pro Tempore Mounce stated that a representative of Casa de Lodi requested the
meeting be continued until they have had an opportunity to review the documentation.
Council Member Hitchcock stated she views this as an informational only meeting and
would prefer to continue with the background of the subject matter. Council Member
Katzakian agreed.
City Manager King briefly introduced the subject matter of mobile home electric rates.
Electric Utility Director George Morrow provided a PowerPoint presentation (filed) regarding
the mobile tome park electric rates. Specific topics of discussion included background,
park description, EM (Mobile Home Park Service) rate history, rates to mobile home
tenants, EM language, EM rate application, "pad" discounts, EM versus EA (Residential
Service) rate comparison, EM recommendation, and summary.
In response to Council Member Hitchcock, Mr. Morrow stated the mobile home park rate is
5% less because the rate was previously tabled; possibly due to equity considerations.
In response to Council Member Hitchcock, Mr. Morrow stated the mobile home rate payers
do get to participate in discount rate programs.
In response to Council Member Hitchcock, Mr. Morrow stated a park owner provides
information to tenants and staff analyzes billings and reduces the amounts accordingly if
discounts apply.
In response to Council Member Hitchcock, Mr. Morrow stated some mobile home parks are
being charged EA rates while others are being charged EM rates, as determined by a
review of the billings.
City Attorney Schwabauer provided an overview of the intent and literal meaning of the
ordinance language for the two rates.
In response to Council Member Hitchcock, Mr. Morrow stated staff can attempt to get
additional historical information regarding whether there was an oversight when the previous
market cost adjustment rate discussion occurred. Mayor Johnson stated he would prefer to
Continued April 17, 2007
go from this point forward to determine a solution rather than focus on the history of the
problem.
In response to Mayor Johnson, Mr. Morrow stated the two parks being charged the rate in
question are Cherokee and Lodi.
In response to Mayor Johnson, Mr. Morrow stated staff will be bringing back to Council EM
rate adjustments.
In response to Council Member Hitchcock, Mr. Morrow stated the $200,000 would go
directly to Electric Uility instead of the park owners. He also provided an overview of the
mathematical equations associated with possible additional revenue.
In response to Mayor Pro Tempore Mounce, Mr. Morrow stated the 47% average increase
does not apply to end users who already receive the discount.
City Manager King provided an overview of the schedule stating there is an action item on
the April 18, 2007, Council meeting agenda setting a public hearing for May 2 to coincide
with the budget timelines.
In response to Council Member Hitchcock, Mr. Baum stated he has some concerns with
the numbers and facts of the presentation and is not prepared to go into details at this time.
In response to Mayor Johnson, Mr. Baum stated the May 2 date provides adequate time for
him to review the material.
In response to Mayor Johnson, Mr. Morrow stated staff will touch base with the affected
park owners regarding the schedule. City Attorney Schwabauer stated notice will be
provided pursuant to law as required for all public hearings.
In response to Mayor Pro Tempore Mounce, Mr. Morrow stated the park owner at
1651 Cherokee Lane was provided a letter notice.
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 7:38 a.m.
ATTEST:
Randi Johl
City Clerk
W
AGENDA ITEM
CITY OF Low
COUNCIL COMMUNICATION
AGEW TITLE: Updab on Mobile Horne Electric Rates (EUD)
MEETING DATE: April 47, 2007 (Shirtslreve Session)
PREPAOtED BY-. El rtdc Ud tp DincW
RECOMDBD ACTION: Presentation Only.
BACK40MUND INFORMATION: The rate being recommended would replicate the five -tier schedule
adopted for all other residential users. It is recommended that
these changes become effective July 1, 2007.
The City Council held a pubic hearing in February 2006, to amend electric rates for all customer classes.
During the presentation, it was noted that the rates being charged mobile home residents were
substas tially lower than those of customers residing in other types of residential homes. This rate
disparly appears to be the result of staff misunderstanding the direction received during rate discussions
at Council meetings in October 2005.
There are six mobHe home parks, with a total of 490 pads being served by Lodi Electric Utility. Mobile
home park owners (master -teetered) are billed on the EM rate schedule; they then bill their sub -metered
tenants on the applicable rale schedule (EA, ED) and apply any entitled discounts. Residents of mobile
home parks are eligible for the same rates and discounts as "traditional" residential customers.
In checking with the six parks in Lodi, there is a fair amount of misunderstandingfmisinterprotation of the
mobile home park rate structure. We found that four parks (414 pads) are charging their tenants at the
EA residential rate Gout 6# per kilowatt-hour over the EM rate). The other two parks (76 pads) are
using the EM (mobile home park) rate schedule to bill their tenants.
Curren*y, Mobile Home Padc Service (EM) includes a discount of $8.13 per number of occupied mobile
home park units wired for sarvice each month. This discount provides recovery by mobile home park
ownersfor thek costs of owning, operating and maintaining their electric sub metered system. Other
energy providers within our area that offer a mobile home park service rate allow park owners a discount
of $0.37925 per day or approximately $11.38/m
onper number of occ ied units.
Attached are the proposed EM schedule, theEM SOTduled and t current Schedule EA for
comparison. J A
Aftchmsoft (3)
AA-V%t,
George F. Morrow
Electric Utility Director
APPROVED:
131 044, City Manager
i
CITY OF LODI
ELECTRIC UTILITY DEPARTMENT
SCHEDULE EM
MOBILE HOME PARK SERVICE
APPLICABILITY:
This schedule is applicable to service supplied to mobile home parks through one meter and sub -
metered to all individual mobile home units.
RATES:
MinimumCharge...................................................................................$5.00
Energy Charge is by Tier of kWh usage:
$/kWh
Tier 1
Tier 2
Tier 3
Tier 4
Tier 5
(Baseline)
(101-130% of
131-200% of
(201-300% of
(Over 300% of
(Baseline)
baseline)
baseline)
baseline
baseline
$0.1420
$0.1450
$0.2235
$0.3180
$0.3300
Summer (May through
October)
Energy Tiers
Tier 1
Tier 2
Tier 3
Tier 4
Tier 5
(Baseline)
(101-130% of
131-200% of
(201-300% of
(Over 300% of
baseline)
baseline)
baseline
baseline
Beginning Tier
0
482
626
963
>1,443
kWh/month
Ending Tier
481
625
962
1,443
kWh/month
Winter (November
through April)
Energy Tiers
Tier 1
Tier 2
Tier 3
Tier 4
Tier 5
(Baseline)
(101-130% of
131-200% of
(201-300% of
(Over 300% of
baseline)
baseline)
baseline
baseline
Beginning Tier
0
392
509
783
>1,173
kWh/month
Ending Tier
391
508
782
1,173
kWh/month
Per number of occupied mobile home park units wired for service ................. $ 11.38
Canceling Ordinance No. 1772
EM -1/3
Effective July 1, 2007
Ordinance No.
SCHEDULE EM
MOBILE HOME PARK SERVICE
MARKET COST ADJUSTMENT (MCA):
A market cost adjustment may be included in each bill for service. The adjustment shall be the
product of the total kilowatt-hours (kWh) for which the bill is rendered times the adjustment amount
per kWh. The adjustment amount per kWh will reflect amounts charged the City of Lodi by various
suppliers of bulk power not covered in the above rates.
BILLING CYCLE CHARGE (MONTHLY BILL):
The Billing Cycle Charge is the higher of the Minimum Charge or the sum of the Customer Charge,
Energy Charge, Discount and MCA.
SPECIAL CONDITIONS:
(a) This rate is available only for mobile home park master metering in service prior to March 31,
1989.
(b) It is the responsibility of the master -metered customer to notify the City Finance Department
within 15 days following any change in the number of occupied mobile home park units wired
for service.
(c) Miscellaneous electric loads such as general lighting, laundry rooms, general maintenance,
and other similar use incidental to the operation of the premises as a multi -family
accommodation will be considered domestic use.
(d) To qualify for Single Household Alternative Rate for Energy (SHARE) the sub -metered tenants
of the master -metered City of Lodi Customer will submit an application, including the tenant's
unit number, to the City of Lodi Finance Department. The City of Lodi Finance Department will
notify the master -metered Customer of the tenant's certification.
(e) Certification will be required to determine income eligibility for the SHARE program. Sub -
metered tenants of the master metered City of Lodi Customer must sign a statement upon
application indicating that the City of Lodi may verify the sub -metered tenant's eligibility at any
time. The master -metered Customer, not the City of Lodi, is responsible for extending the
SHARE program to tenants certified to receive them. If verification establishes that the SHARE
tenant is ineligible, the tenant will be removed from the master -metered Customer's qualified
tenants and the City of Lodi may render corrective billings.
(f) An additional medical discount is available as described in Schedule MR, Residential Medical
Rider.
Canceling Ordinance No. 1772 Effective July 1, 2007
Ordinance No.
EM -2/3
SCHEDULE EM
MOBILE HOME PARK SERVICE
(g) The master -metered Customer shall not bill any sub -metered tenant more than that tenant
would be billed if that tenant were an individual customer of the City of Lodi. For a qualifying
SHARE tenant, the master -metered Customer shall bill the qualifying tenant at the applicable
rates equivalent to Schedule ED, Residential SHARE Program Service. A non -qualifying
tenant shall be billed at the applicable rates equivalent to Schedule EA, Residential Service.
(h) The master-meter/sub-meter rate discount provided herein prohibits further recovery by mobile
home park owners for the costs of owning, operating and maintaining their electric sub -
metered system.
FIXED INCOME DISCOUNT:
For those customers who are on fixed incomes below $45,000 annually and who are over 62
years of age, and do not qualify for any other discount, a discount of 5% shall apply to the
electric bill. Procedures as to qualification will be established by the Electric Utility
Department.
Canceling Ordinance No. 1772
EM -3/3
Effective July 1, 2007
Ordinance No.
i
CITY OF LODI
ELECTRIC UTILITY DEPARTMENT
SCHEDULE EM
MOBILE HOME PARK SERVICE
APPLICABILITY:
This schedule is applicable to service supplied to mobile home parks through
one meter and sub -
metered to all individual mobile home units.
RATES:
CustomerCharge.............................................................................................
$ 4.87
Energy Charge:
Summer (May 1 through October 31)
First 440 kWh, per kWh.................................................................................
.10197
Over 440 kWh, per kWh................................................................................
.14025
Winter (November 1 through April 30)
First 400 kWh, per kWh.................................................................................
.10197
Over 400 kWh, per kWh................................................................................
.14025
MINIMUM CHARGE:
All kWh, per kWh............................................................................................ .05000
Per number of occupied mobile home park units wired for service ................. $ 8.13
MARKET COST ADJUSTMENT (MCA):
A market cost adjustment may be included in each bill for service. The adjustment shall be the
product of the total kilowatt-hours (kWh) for which the bill is rendered times the adjustment amount
per kWh. The adjustment amount per kWh will reflect amounts charged the City of Lodi by various
suppliers of bulk power not covered in the above rates.
Canceling Ordinance No. 1693
EM -1/2
Effective June 1, 2006
Ordinance No. 1772
SCHEDULE EM
MOBILE HOME PARK SERVICE
BILLING CYCLE CHARGE (MONTHLY BILL):
The Billing Cycle Charge is the higher of the Minimum Charge or the sum of the Customer Charge,
Energy Charge, Discount and MCA.
SPECIAL CONDITIONS:
(a) This rate is available only for mobile home park master metering in service prior to March 31,
1989.
(b) It is the responsibility of the master -metered customer to notify the City Finance Department
within 15 days following any change in the number of occupied mobile home park units wired
for service.
(c) Miscellaneous electric loads such as general lighting, laundry rooms, general maintenance,
and other similar use incidental to the operation of the premises as a multi -family
accommodation will be considered domestic use.
(d) To qualify for Single Household Alternative Rate for Energy (SHARE) the sub -metered tenants
of the master -metered City of Lodi Customer will submit an application, including the tenant's
unit number, to the City of Lodi Finance Department. The City of Lodi Finance Department will
notify the master -metered Customer of the tenant's certification.
(e) Certification will be required to determine income eligibility for the SHARE program. Sub -
metered tenants of the master metered City of Lodi Customer must sign a statement upon
application indicating that the City of Lodi may verify the sub -metered tenant's eligibility at any
time. The master -metered Customer, not the City of Lodi, is responsible for extending the
SHARE program to tenants certified to receive them. If verification establishes that the SHARE
tenant is ineligible, the tenant will be removed from the master -metered Customer's qualified
tenants and the City of Lodi may render corrective billings.
(f) The master -metered Customer shall not bill any sub -metered tenant more than that tenant
would be billed if that tenant were an individual customer of the City of Lodi. For a qualifying
SHARE tenant, the master -metered Customer shall bill the qualifying tenant at the applicable
rates equivalent to Schedule ED, Residential SHARE Program Service. A non -qualifying
tenant shall be billed at the applicable rates equivalent to Schedule EA, Residential Service.
Canceling Ordinance No. 1693
EM -2/2
Effective June 1, 2006
Ordinance No. 1772
y Ov
CITY OF LODI
ELECTRIC UTILITY DEPARTMENT
SCHEDULE EA
RESIDENTIAL SERVICE
APPLICABILITY:
This schedule is applicable to single-phase domestic power service in single-family and multi -family
dwellings separately metered by the City including those on discontinued all electric rate schedule, EE.
RATES:
MinimumCharge...................................................................................$5.00
Enerav Charae is by Tier of kWh usaae:
Summer (Mav through October) Enerav Tiers
Tier 1
Tier 2
Tier 3
Tier 4
Tier 5
(Baseline)
(101-130% of
131-200% of
(201-300% of
(Over 300% of
baseline)
baseline)
baseline
baseline
$/kWh
$0.1420
$0.1450
$0.2235
$0.3180
$0.3300
Summer (Mav through October) Enerav Tiers
Winter (November through April) Enerav Tiers
Tier 1
Tier 2
Tier 3
Tier 4
Tier 5
(Baseline)
(101-130% of
131-200% of
(201-300% of
(Over 300% of
baseline)
baseline)
baseline
baseline
Beginning Tier
0
482
626
963
>1,443
kWh/month
Ending Tier
481
625
962
1,443
kWh/month
Winter (November through April) Enerav Tiers
MARKET COST ADJUSTMENT (MCA):
A Market cost adjustment may be included in each bill for service. The adjustment shall be the product
of the total kilowatt-hours (kWh) for which the bill is rendered times the adjustment amount per kWh.
The adjustment amount per kWh will be calculated to reflect amounts charged the City by various
suppliers of bulk power not covered in the above rates.
Canceling Ordinance No. 1718 Effective June 1, 2006
EA -1/2 Ordinance No. 1772
Tier 1
Tier 2
Tier 3
Tier 4
Tier 5
(Baseline)
(101-130% of
131-200% of
(201-300% of
(Over 300% of
baseline)
baseline)
baseline
baseline
Beginning Tier
0
392
509
783
>1,173
kWh/month
Ending Tier
391
508
782
1,173
kWh/month
MARKET COST ADJUSTMENT (MCA):
A Market cost adjustment may be included in each bill for service. The adjustment shall be the product
of the total kilowatt-hours (kWh) for which the bill is rendered times the adjustment amount per kWh.
The adjustment amount per kWh will be calculated to reflect amounts charged the City by various
suppliers of bulk power not covered in the above rates.
Canceling Ordinance No. 1718 Effective June 1, 2006
EA -1/2 Ordinance No. 1772
SCHEDULE EA
RESIDENTIAL SERVICE
BILLING CYCLE CHARGE (MONTHLY BILL):
The billing cycle charge is the higher of the sum of the Minimum Charge and the MCA or the sum of the
Energy Charge and the MCA.
SPECIAL CONDITIONS:
(a) When a business or commercial establishment is conducted in conjunction with a residence and
both are measured through one meter, this rate does not apply.
(b) This rate does not apply to service used for common area and facilities in multi -family dwellings.
(c) An additional first block medical quantity is available as described in Schedule MR, Residential
Medical Rider.
FIXED INCOME DISCOUNT:
For those customers who are on fixed incomes below $45,000 annually and who are over 62 years of
age, and do not qualify for any other discount, a discount of 5% shall apply to the electric bill.
Procedures as to qualification will be established by the Electric Utility Department.
Canceling Ordinance No. 1718 Effective June 1, 2006
EA -2/2 Ordinance No. 1772
Electric Utility Department
Mobile Home Park
Electric Rates
City Council Shirtsleeve Session
April 17, 2007
Background
• EUD provides Mobile Home Park service under its EM
rate tariff
• Six parks receive "grandfathered" service due to
operation before March 31, 1989
• EUD provides service to master meter
• Park owner "submeters" and provides bills to park
tenants
• Tenants qualify for all normal rate discounts
• EM rate substantially below regular EA residential rate
(-5 0/kwh or 32%)
2
Park Description
Name
Pads
Location
Almond Drive
87
471 E. Almond
Shady Acres
44
621 E. Lockeford
Casa De Lodi
240
812 E. Turner
Palms
52
845 S. Cherokee
Cherokee
42
1651 S. Cherokee
Lake
34
1390 W. Lockeford
Note: 499 pads in total 3
EM Rate History
EM Consistent with EA residential rate until 2001
In August 2001, an MCA (Market Cost
Adjustment) was implemented for EA rate but
not the EM rate (1.75 to 5.75 0/kwh)
In December 2002, an approximate 5% increase
was given to EA rate for CAISO costs. EM
received no increase.
• In December 2005, an MCA of 0.71 0/kwh was
set for EM rate. EA received an MCA of 1.75 to
20 0/kwh.
4
Rates to
Mobile Home Tenants
• EM rate tariff provides that tenants receive
all applicable discounts
• If no discounts apply, EM tariff says
tenants pay regular EA residential rate
—This was correct prior to divergence of EM
and EA rates in 2001
—Should provide that tenants pay the mobile
home rate less pad discounts to owners
6i
EM Language
The master -metered Customer shall not bill any
sub -metered tenant more than that tenant would
be billed if that tenant were an individual
customer of the City of Lodi. For a qualifying
SHARE tenant, the master -metered Customer
shall bill the qualifying tenant at the applicable
rates equivalent to Schedule ED, Residential
SHARE Program Service. Anon-qualifying
tenant shall be billed at the applicable rates
equivalent to Schedule EA, Residential
Service.
C.1
t� �P
9��FOR�EM Rate Application
• Four (4) parks using same outside billing
agent charged full EA rate to tenants
• Remaining two (2) parks charge the EM
rate to tenants
• For 15 month period of Jan 06 through
Mar 07, the four parks charging EA rate
received ~$206K over EM rate (about
$32/mo for 423 homes).
7
"Pad" Discounts
• EM rate tariff provides a discount (" pad
discount") to compensate park owner for
cost of park electric distribution
• Currently, discount equals $8.13 per
occupied pad per month
• EUD proposing to increase discount to
$11.38 per pad per month (consistent with
PG&E rate)
E:1
EM vs EA
Rate Comparison
Tariff
Average Rate
EA
15.7 0/kwh
EM
10.7 0/kwh
Difference
5.0 0/kwh
Note: Calendar Year 2006 data
t� �P
EM Recommendation
9��FOR�
It is recommended that the EM rate be modified
to reflect the tier size and prices of the EA rate
tariff (47% average increase)
Existing 2 -tiered EM energy charges of 10.197
to 14.025 Olkwh would change to five -tiered
charges ranging from 14.2 to 33.0 0/kwh
Pad discount increased from 8.13 to 11.38
0/kwh per month
10
Summary
• Staff recommends EM rate be modified to
be consistent with EA rate
• Staff also recommends "pad discount" for
park owner be updated
• Inconsistent application of rates to mobile
park tenants found
• Proposed May 2, 2007 public hearing on
possible EM rate changes
11