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HomeMy WebLinkAboutMinutes - November 27, 2018 SSLODI CITY COUNCIL SHIRTSLEEVE SESSION CARNEGIE FORUM, 305 WEST PINE STREET TUESDAY, NOVEMBER 27, 2018 A. Roll Call by City Clerk An Informal Informational Meeting ("Shirtsleeve" Session) of the Lodi City Council was held Tuesday, November 27, 2018, commencing at 7:04 a.m. Present: Council Member Johnson, Council Member Kuehne, Mayor Pro Tempore Mounce, and Mayor Nakanishi Absent: Council Member Chandler Also Present: City Manager Schwabauer, City Attorney Magdich, and City Clerk Ferraiolo NOTE: Council Member Johnson participated in the meeting via teleconference. B. Topic(s) B-1 Review Proposed Updates to Lodi Electric Utility Rules and Regulations (EU) Senior Power Engineer Hasan Shahriar provided a PowerPoint presentation regarding Lodi Electric Utility rules and regulations update. Specific topics of discussion included background; list of rules and regulations; summary of changes; proposed changes to Rule No. 1 (Point of Interconnection) - new definitions, updated definitions, history and map of Downtown District, public outreach and timeline, benefits, impact, and conditions of compliance; proposed changes to Rule Nos. 2 through 22; and history of changes. In response to Council Member Johnson, Mr. Shahriar stated he would provide Council an estimate of how much of the downtown has the point of interconnection for multiple businesses housed and locked behind one business versus having the point of interconnection for multiple businesses in the open and accessible to Utility staff. Mr. Shahriar added there are also a number of electrical wires that run underground and through basements of businesses, which makes it difficult for staff to access. He used the example of the Lodi Beer Company, which is currently doing tenant improvements, that agreed to cage the section with the main electrical panel and create a staircase and street access for Utility staff to get to the panel. In response to Mayor Pro Tempore Mounce and Council Member Kuehne, City Manager Schwabauer stated the current solution to the tangled mess of electric wires and points of interconnection is to gain access to businesses where panels are locked behind gates or in basements and to make those changes when businesses make improvements to their properties over a certain value. Mayor Pro Tempore Mounce expressed concern that this approach places a burden on business owners that could put them out of business. Mr. Schwabauer explained that these improvements to the Utility system, including replacing the aging infrastructure in the near future, must be done and the question becomes who pays for it: rate payers or business owners operating at these locations. Mayor Pro Tempore Mounce suggested a third way to pay for the improvements: a bond that would be paid back over time by the affected businesses as a group. Mayor Pro Tempore Mounce stated it was difficult discussing the rule changes without seeing the amended rules, to which City Attorney Magdich assured Council that a red -line version of the rules and regulations will be provided to Council when it comes before it for approval. Mr. Schwabauer added that the goal was to bring this to Council in December for approval; however, it will likely be pushed out further to give staff time to look into the concept of a bond to pay for the upgrades and what that cost would be. Council Member Kuehne stated he is supportive of Mayor Pro Tempore Mounce's suggestion that 1 the area of service pay for the upgrades as a whole, depending on what the final numbers are and questioned how that would work. Mr. Schwabauer explained that the cost would be paid through a municipal bond secured by rates for standard participation. Council Member Kuehne stated he is not fond of bonds; however, this work must be done and this option would make it less painful on businesses and would focus on the area receiving the benefit. He reiterated his support, pending the final figures. Myrna Wetzel, member of the public, questioned if downtown Lodi was strictly commercial use because there are residential units above businesses, to which Mr. Schwabauer responded that downtown is a mixed use corridor that includes commercial and residential. Changes to the rules would apply to the residential units located downtown, but not residences outside of the area. Alex Aliferis suggested that potential costs be added to each of the rule changes and stated that greater effort should be made to get business owner participation on these proposed changes. Mayor Nakanishi pointed out that the downtown property owners had an opportunity to attend a meeting on the issue, but only one person participated. Mr. Schwabauer stated staff will meet with downtown businesses again if there are new concepts brought forward. Mayor Pro Tempore Mounce further suggested another Shirtsleeve Session to discuss options on paying for the upgrades, in addition to a meeting with downtown owners to get their feedback on paying for the improvements. Mayor Nakanishi stated that a Town Hall meeting may be a better option than an early morning Shirtsleeve Session. C. Comments by Public on Non -Agenda Items None. D. Adjournment No action was taken by the City Council. The meeting was adjourned at 7:59 a.m. ATTEST: Jennifer M. Ferraiolo City Clerk 2 TM CITY OF LODI COUNCIL COMMUNICATION AGENDA ITEM 84 1 AGENDA TITLE: Review Proposed Updates to Lodi Electric Utility Rules and Regulations MEETING DATE: November 27, 2018 PREPARED BY: Electric Utility Director RECOMMENDED ACTION: Review proposed updates to Lodi Electric Utility Rules and Regulations. BACKGROUND INFORMATION On March 1, 1989, the City Council adopted Resolution No. 89-29 approving Lodi Electric Utility (LEU) Rules and Regulations that determine how the utility will furnish electric service to any premises within the corporate limits of the City. From time to time, updates have been made to these Rules and Regulations based on changes in the electric utility industry such as, legislative and regulatory requirements, technological advances, and local requirements. Attachment A lists the historical updates as adopted by the City Council. A comprehensive review of the full suite of LEU Rules and Regulations has been completed. Updates include non -substantial typographical, formatting, and reference -related issues. Staff also recommends clarifications and/or additions for the following items: 1) utility easements; 2) temporary service availability; 3) vegetation management; 4) inspections and testing; 5) bill adjustments; 6) service ties; 7) infrastructure responsibility and ownership; 8) energy data; 9) customer -owned parallel generation facilities; and 10) point of interconnection in the downtown district. Staff will provide the Council with the details regarding the aforementioned recommended changes. FISCAL IMPACT: Not applicable. FUNDING AVAILABLE: Not applicable. (oPr Elizabeth A. Kikdey Electric Utility Director PREPARED BY: Jules Marchesseault, Engineering and Operations Manager EAK/JM APPROVED: t p en Schwa , City Manager Attachment A Revision History of LEU Rules and Regulations Rule # Title Rev # Resolution # Date of Rev Effective Date Summary of Revisions 1 General Statement and Definitions 1 89-29 3/1/1989 3/22/1989 Adopted LEU's Rules and Regulations 2 2010-195 11/17/2010 1/1/2011 Actual Cost, Construction, Service, Estimated Cost, and Reconciled were added to the definitions list for True - Up Process. 2 Description of Service 1 89-29 3/1/1989 3/22/1989 Adopted LEU's Rules and Regulations 3 Application for Service 1 89-29 3/1/1989 3/22/1989 Adopted LEU's Rules and Regulations 4 Contracts 1 89-29 3/1/1989 3/22/1989 Adopted LEU's Rules and Regulations 5 Special Information Required on Forms 1 89-29 3/1/1989 3/22/1989 Adopted LEU's Rules and Regulations 6 Establishment and Re- establishment of Credit 1 89-29 3/1/1989 3/22/1989 Adopted LEU's Rules and Regulations 7 Deposits 1 89-29 3/1/1989 3/22/1989 Adopted LEU's Rules and Regulations 8 Notices 1 89-29 3/1/1989 3/22/1989 Adopted LEU's Rules and Regulations 9 Rendering and Payment of Bills 1 89-29 3/1/1989 3/22/1989 Adopted LEU's Rules and Regulations 10 Disputed Bills 1 89-29 3/1/1989 3/22/1989 Adopted LEU's Rules and Regulations 11 Discontinuance and Restoration of Service 1 89-29 3/1/1989 3/22/1989 Adopted LEU's Rules and Regulations 12 Application of Rate Schedules 1 89-29 3/1/1989 3/22/1989 Adopted LEU's Rules and Regulations 13 Temporary Service 1 89-29 3/1/1989 3/22/1989 Adopted LEU's Rules and Regulations 2 2006-234 12/20/2006 2/19/2007 Beginning of concept that the developer pays for line extension 3 2010-195 11/17/2010 1/1/2011 Introduced the True -Up Process 14 Continuity of Service 1 89-29 3/1/1989 3/22/1989 Adopted LEU's Rules and Regulations 15 Extension of Facilities 1 89-29 3/1/1989 3/22/1989 Adopted LEU's Rules and Regulations 2 2006-234 12/20/2006 2/19/2007 Beginning of concept that the developer pays for line extension 3 2007-22 2/7/2007 4/9/2007 Establishes Substation System Charge on new developments outside city limits as of 8/1/2006 4 2010-195 11/17/2010 1/1/2011 Introduced the True -Up Process 5 2012-142 08/15/2012 Establishes Impact Substation Fees and eliminates Substation and Transmission Fees 16 Service Connections and Facilities on Customer's Premises 1 89-29 3/1/1989 3/22/1989 Adopted LEU's Rules and Regulations 2 2006-234 12/20/2006 2/19/2007 Beginning of concept that the developer pays for line extension 3 2010-195 11/17/2010 1/1/2011 Introduced the True -Up Process 17 Measurement of Service 1 89-29 3/1/1989 3/22/1989 Adopted LEU's Rules and Regulations 18 Meter Tests and Adjustments of Bills for Meter Error 1 89-29 3/1/1989 3/22/1989 Adopted LEU's Rules and Regulations 19 Supply to Separate Premises and Resale 1 89-29 3/1/1989 3/22/1989 Adopted LEU's Rules and Regulations Attachment A 2 2000-156 8/16/2000 Amendments were adopted to stop using submetering and making sure that people weren't getting charged more where submetering already exists. 20 Replacement of Overhead with Underground Facilities 1 89-29 3/1/1989 3/22/1989 Adopted LEU's Rules and Regulations 21 Non City -Owned Parallel Generation 1 89-29 3/1/1989 3/22/1989 Adopted LEU's Rules and Regulations 2 94-58 5/18/1994 5/18/1994 3 2006-120 6/21/2006 7/1/2006 Changing the amount of liability insurance required for small electrical generators that are interconnected with Lodi's system to that of the California Public Utilities Commission. 22 Medical Baseline Quantity 1 89-29 3/1/1989 3/22/1989 Adopted LEU's Rules and Regulations 2 94-58 5/18/1994 5/18/1994 23 Schedule of Charges (Fee Schedule) 1 89-29 3/1/1989 3/22/1989 Adopted LEU's Rules and Regulations 2 94-58 5/18/1994 5/18/1994 During normal business hours Reconnection charge was added, Transformation Capacity Charge was removed, and the Distribution Service Payment for mobile home parks was increased 3 2000-156 8/16/2000 10/1/2000 Schedule of Charges was added to the appendix of the rules and regulations Lodi Electric Utility Rules and Regulations Updates Lodi City Council November 27, 2018 Lodi Electric Utility Rules and Regulations Updates Background ® Summary of Changes ® Rule No.1 Proposed Changes Downtown District Point of Interconnection ® Rules Nos. 2-22 Proposed Changes ® Questions Background Purpose Formalize how LEU will provide electric service to premises within city limits Outline customer requirements ® First Established - March 1, 1989 City Council Resolution No. 89-29 Periodically revised via City Council resolutions LEU Rules and Regulations rml=r- fTNI:l1WMII 1 General Statement and Definitions 2 Description of Service 3 Application for Service 4 Contracts 5 Special Information Required on Forms 6 Establishment and Re-establishment of Credit 7 Deposits 8 Notices 9 Rendering and Payment of Bills 10 Disputed Bills 11 Discontinuance and Restoration of Service 12 13 14 15 16 17 18 19 20 21 22 Application of Rate Schedules Temporary Service Continuity of Service Extension of Facilities Service Connections and Facilities on Customer's Premises Measurement of Service Meter Tests and Adjustments of Bills for Meter Error Supply to Separate Premises and Resale Replacement of Overhead with Underground Facilities Non City -Owned Parallel Generation Medical Baseline Quantity Summary of Changes c, General Revision History added Formatting updates Grammatical/spelling corrections ® Areas of focus Rule No. 1 - Point of Interconnection Downtown District Rule No. 2 -Description of Service Subsurface to padmount equipment Rule No. 15 -Extension of Facilities Added electrical service inspections Rule No. 21 - Non City -Owned Parallel Generations Added updated inverter requirements Rule No 1 Proposed Changes New definitions Business Day Demand Distribution System > Downtown District Electric Emergency Plan > Power Factor Public Right-of-way > Public Utility Easement Smart Inverter > Sub -metering Sub -transmission Updated definitions Point of Interconnection > Service Temporary Service Rule No. 1 Proposed Changes Downtown District Point of Interconnection History of Downtown District Established in 1970's Entire area zoned commercial use Underground Utility District Area bound by Church -Sacramento -Locust - Lodi See map on next slide Rule No. 1 Proposed Changes Downtown District Map -,.r-- . - I r' r �--•� I r r : - ! I I r --t•._ • : i - a j— i i il I J • CID II ----7 G ---.�,.�. shoot Street ------ a , I L .cil ------...-- - - J ! 0 li ,... .. • . •- aF .,,., .. 2 }• a � tures1,2,3i� Sacramento Street • Southern Pacific R& r0 d ••• maga ..Zrc ••••• • Picture 1 Rule No. 1 Proposed Changes Downtown District Point of Interconnection Picture 2 Picture 3 Picture 4 Rule No. 1 Proposed Changes Downtown District Point of Interconnection c, Public outreach and timeline Jun 3rd - met with Pat Patrick/John Del Monica Oct 4th - Held open house for Downtown business district members at Chamber of Commerce Conference room Nov 27th - City Council Shirtsleeve Session Dec 1 9th - City Council Meeting adopt updates c, Benefits Safety Improved reliability More timely response/repairs in event of failure Rule No. 1 Proposed Changes Downtown District Point of Interconnection Impact Moves LEU Point of Interconnection to where service leaves public right-of-way Eliminates secondary runs through adjacent private properties Moves meter and utility infrastructure into public right-of-way Minimizes impact on adjacent property owners Required as service conductor is aging Conditions of Compliance Major renovation projects (Ref Lodi Municipal Code 15.44) Failure of a Service Lateral Full compliance required within 20 years (2038) Based on life expectancy of existing secondary service conductor Rules Nos. 2-22 Proposed Changes Rule No. 2 - Description of Service Added rule to change subsurface equipment to current standard padmount Added reference to "Lodi Municipal Code" - Chapter 13.20 Article III regarding "Power Factor Correction" Added "Non -Residential Customer Requested Scheduled Outages" section Replaced bullet points with tables where applicable 01 Rule No. 3 - Application for Service Clarified when "Service and Meter Application" is required Added reference to "Lodi Municipal Code" Chapter - 13.20 Article 3 regarding "Conditions of Service" Rules Nos. 2-22 Proposed Changes c Rule No. 4 - Contracts Updated "Energy Data Pulse" section to only apply to existing equipment Added references to "Lodi Municipal Code" to determine when Contracts are needed c Rule No. 5 - Special Information Required on Forms Added reference to "Lodi Municipal Code" regarding director of finance authority c Rule No. 6 - Establishment and Re-establishment of Credit Added reference to "Lodi Municipal Code" regarding director of finance authority 0 Rule No. 7 - Deposits Updated reference to "Lodi Municipal Code" in "Deposits" section Rules Nos. 2-22 Proposed Changes c Rule No. 8 — Notices Updated address to which Customer Notices are sent Rule No. 9 — Rendering and Payment of Bills No changes Rule No. 10 — Disputed Bills Added reference to "Lodi Municipal Code" Chapter 13.04, Section 13.04.120 regarding "Bill Adjustment" Rule No. 11 — Discontinuation and Restoration of Service Added reference to "Lodi Municipal Code" Chapter 13.04, Section 13.04.020 regarding "Application for Service or Discontinuance" ® Rule No. 12 — Application of Electric Service Rates Changed references to "Rate Schedules" for "Electric Service Rates" Added references to "Lodi Municipal Code" Section 13.20, Article III, regarding "Rates" Rules Nos. 2-22 Proposed Changes 0 Rule No. 13 — Temporary Service Added Temporary Service may not be available until City has time to obtain necessary rights-of-way and install equipment 4 Rule No. 14 — Continuity of Service Now references Electric Emergency Plan (EEP) when shortage of Electric supply occurs Added "Conflict with Equipment and Facilities" and "Tree Trimming" sections (moved from Rule No. 15) C Rule No. 15 — Extension of Facilities Added "Electrical Service Inspections" section Rule No. 16 - Service Connections and Facilities on Customer Premises Added max number of times LEU will do inspections before charging for both overhead and underground Rules Nos. 2-22 Proposed Changes • Rule No. 17 — Measurement of Services "Energy Data Pulses" apply to existing equipment only Rule No. 18 - Meter Tests and Adjustments of Bills for Meter Error Added one free meter test per year per premise Reference Lodi Municipal Code for meter test fees ® Rule No. 19 — Supply to Separate Premise and Resale Added reference to "Lodi Municipal Code" Section 13.20.210, regarding "Mobile Home Park Service Rates" ® Rule No. 20 — Replacement of OH with UG Facilities Added reference to "Lodi Municipal Code" Chapter 12.24, regarding "Underground Utilities" Rules Nos. 2-22 Proposed Changes ® Rule No. 21 - Non -City Owned Parallel Generation For all Parallel Generation: Defined application process more clearly Pointed to PV Solar installation guide for solar installation guidelines and fees. Smart invertors required and LEU allowed to gather data Added reference to Lodi Municipal Code: CH 13.20, Article 111 and Section 13.20.290, regarding "Schedule EP- Energy Purchase" For Parallel Generation >1 MW Defined "Liability" requirements Added reference to Lodi Municipal Code: CH 13.20, Article 111 and Section 13.20.300 regarding "Schedule SS - Standby Service" Rules Nos. 2-22 Proposed Changes ® Rule No. 22 - Medical Baseline Quantity Added reference to "Lodi Municipal Code" Chapter 13.20, Section 13.20.220, regarding "Schedule MR -Residential Medical Rider" Questions Back -Up Rule # History of Changes Title Rev # Resolution # Date of Rev Effective Date Summary of Revisions 1 General Statement and Definitions 1 89-29 3/1/1989 3/22/1989 Adopted LEU's Rules and Regulations 2 2010-195 17 -Nov -10 1/1/2011 Actual Cost, Construction, Service, Estimated Cost, and Reconciled were added to the definitions list for True -Up Process. 2 Description of Service 1 89-29 3/1/1989 3/22/1989 Adopted LEU's Rules and Regulations 3 Application for Service 1 89-29 3/1/1989 3/22/1989 Adopted LEU's Rules and Regulations 4 Contracts 1 89-29 3/1/1989 3/22/1989 Adopted LEU's Rules and Regulations 5 Special Information Required on Forms 1 89-29 3/1/1989 3/22/1989 Adopted LEU's Rules and Regulations 6 6 Establishment and Re - establishment of Credit 89-29 3/1/1989 3/22/1989 Adopted LEU's Rules and Regulations 7 Deposits 1 89-29 3/1/1989 3/22/1989 Adopted LEU's Rules and Regulations 8 Notices 1 89-29 3/1/1989 3/22/1989 Adopted LEU's Rules and Regulations 9 Rendering and Payment of Bills 1 89-29 3/1/1989 3/22/1989 Adopted LEU's Rules and Regulations 10 Disputed Bills 1 89-29 3/1/1989 3/22/1989 Adopted LEU's Rules and Regulations 11 Discontinuance and Restoration of Service 1 89-29 3/1/1989 3/22/1989 Adopted LEU's Rules and Regulations 12 Application of Rate Schedules 1 89-29 3/1/1989 3/22/1989 Adopted LEU's Rules and Regulations 13 Temporary Service 1 89-29 3/1/1989 3/22/1989 Adopted LEU's Rules and Regulations 2 2006-234 20 -Dec -06 2/19/2007 Beginning of concept that the developer pays for line extension 3 2010-195 17 -Nov -10 1/1/2011 Introduced the True -Up Process 14 Continuity of Service 1 89-29 3/1/1989 3/22/1989 Adopted LEU's Rules and Regulations 15 Extension of Facilities 1 89-29 3/1/1989 3/22/1989 Adopted LEU's Rules and Regulations 2 2006-234 20 -Dec -06 2/19/2007 Beginning of concept that the developer pays for line extension 3 2007-22 7 -Feb -07 4/9/2007 Establishes Substation System Charge on new developments outside city limits as of 8/1/2006 4 2010-195 17 -Nov -10 1/1/2011 Introduced the True -Up Process 5 2012-142 15 -Aug -12 Esblishes Impact Substation Fees and eliminates Substation and Transmission Fees History of Changes Rule # Title Rev # Resolution # Date of Rev Effective Date Summary of Revisions 16 Service Connections and Facilities on Customer's Premises 1 89-29 3/1/1989 3/22/1989 Adopted LEU's Rules and Regulations 2 2006-234 20 -Dec -06 2/19/2007 Beginning of concept that the developer pays for line extension 3 2010-195 17 -Nov -10 1/1/2011 Introduced the True -Up Process 17 Measurement of Service 1 89-29 3/1/1989 3/22/1989 Adopted LEU's Rules and Regulations 18 Meter Tests and Adjustments of Bills for Meter Error 1 89-29 3/1/1989 3/22/1989 Adopted LEU's Rules and Regulations 19 Supply to Separate Premises and Resale 1 89-29 3/1/1989 3/22/1989 Adopted LEU's Rules and Regulations 2 2000-156 16 -Aug -00 Amendments were adopted to stop using sub -metering and making sure that people weren't getting charged more where sub -metering already exists. 20 Replacement of Overhead with Underground Facilities 1 89-29 3/1/1989 3/22/1989 Adopted LEU's Rules and Regulations 21 Non City Owned Parallel Generation 1 89-29 3/1/1989 3/22/1989 Adopted LEU's Rules and Regulations 2 94-58 5/18/1994 5/18/1994 3 2006-120 21 -Jun -06 7/1/2006 Changing the amount of liability insurance required for small electrical generators that are interconnected with Lodi's system to that of the California Public Utilities Commission. 22 Medical Baseline Quantity 1 89-29 3/1/1989 3/22/1989 Adopted LEU's Rules and Regulations 2 94-58 5/18/1994 5/18/1994 23 Schedule of Charges (Fee Schedule) 1 89-29 3/1/1989 3/22/1989 Adopted LEU's Rules and Regulations 2 94-58 5/18/1994 5/18/1994 During normal business hours Reconnection charge was added, Transformation Capacity Charge was removed, and the Distribution Service Payment for mobile home parks was increased 3 2000-156 8/16/2000 10/1/2000 Schedule of Charges was added to the appendix of the rules and regulations DECLARATION OF POSTING On Thursday, November 20, 2018, in the City of Lodi, San Joaquin County, California, a copy of the November 27, 2018 Shirtsleeve Session Agenda (attached and marked as Exhibit A) was posted on the door 1311 Midvale Road, Lodi, California. I declare under penalty of perjury that the foregoing is true and correct. Executed on November 20, 2018, at Lodi, California. ORDERED BY: Posted by: ( Ohanye,i gnature) JENNIFER M. FERRAIOLO CITY CLERK 4%l� (Date) LODI CITY COUNCIL Carnegie Forum 305 West Pine Street, Lodi *and via conference call: 1311 Midvale Road Lodi, CA 95240 "SHIRTSLEEVE" SESSION Date: November 27, 2018 Time: 7:00 a.m. 1 For information regarding this Agenda please contact: Jennifer M. Ferraiolo City Clerk Telephone: (209) 333-6702 [XI -lib -71T AI Informal Informational Meeting A. Roll CaII by City Clerk B. Topic(s) B-1 Review Proposed Updates to Lodi Electric Utility Rules and Regulations (EU) C. Comments by Public on Non -Agenda Items D. Adjournment Pursuant to Section 54954.2(a) of the Government Code of the State of California, this agenda was posted at least 72 hours in advance of the scheduled meeting at a public place freely accessible to the public 24 hours a day. i►.. .1. nifer M irraiolo ity Clerk All staff reports or other written documentation relating to each item of business referred to on the agenda are on file in the Office of the City Clerk, located at 221 W. Pine Street, Lodi, and are available for public inspection. If requested, the agenda shall be made available in appropriate altemative formats to persons with a disability, as required by Section 202 of the Americans with Disabilities Act of 1990 (42 U.S.C. Sec. 12132), and the federal rules and regulations adopted in implementation thereof To make a request for disability -related modification or accommodation contact the City Clerk's Office as soon as possible and at least 72 hours prior to the meeting date. Language interpreter requests must be received at least 72 hours in advance of the meeting to help ensure availability. Contact Jennifer M. Ferraiolo at (209) 333-6702. Solicitudes de interpretacidn de idiomas deben ser recibidas por to menos con 72 horas de anticipacion a /a reunion para ayudar a asegurar la disponibilidad. Llama a Jennifer M. Ferraiolo (209) 333-6702. J:\CITYC LRIMGENDA\SHIRTSLVISHRTSLV. DOC