HomeMy WebLinkAboutResolutions - No. 2001-13RESOLUTION NO. 2001-13
A RESOLUTION OF THE LODI CITY COUNCIL AUTHORIZING
THE CITY MANAGER TO EXECUTE A CONSULTING SERVICES
AGREEMENT FOR AN ELECTRIC UTILITY COST OF SERVICE
STUDY WITH EES CONSULTING, INC.
WHEREAS, a Cost of Service Study allocates costs for a period of time, usually
one year; and
WHEREAS, a Cost of Service Study is an analytical tool which define, separates
and unbundles the City of Lodi Electric Utility Department's total revenues, expenses and
capital facilities among the various customer classes served for purposes of determining
class revenue requirements; and
WHEREAS, this tool can be used to track competitiveness and to make strategic
decisions and is generally accepted to determine if the class structures are 1 j fair and
equitable; 2) avoiding interclass subsidies; 3) tracking whether revenues cover cost; and
4} providing an accurate price signal; and
WHEREAS, the City of Lodi Electric Utility has not had a Cost of Service prepared
since 1993, and whether or not the Cost of Study is used as the basis for setting rates, it
is a very useful device for analyzing the costs incurred by the Electric Utility Department.
NOW, THEREFORE, BE IT RESOLVED, that the Lodi City Council hereby
authorizes the City Manager to execute a Consulting Services Agreement for an Electric
Utility Cost of Service Study with EES Consulting, Inc., not to exceed $32,000.00.
Dated: January 17, 2001
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I hereby certify that Resolution No. 2001-13 was passed and adopted by the Lodi
City Council in a regular meeting held January 17, 2001 by the following vote:
AYES: COUNCIL MEMBERS — Hitchcock, Howard, Land, Pennino and Mayor
Nakanishi
NOES: COUNCIL MEMBERS — None
ABSENT: COUNCIL MEMBERS — None
ABSTAIN: COUNCIL MEMBERS — None
SUSAN J. BLAG�tCSTON
City Clerk
2001-13