HomeMy WebLinkAboutAgenda Report - December 20, 2000 E-21UCITY OF LODI COUNCIL COMMUNICATION
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AGENDA TITLE: Adopt Resolution Authorizing the City Manager to Enter into a Personal Services
Contract with Johnson and Associates for the Electric Utility Department
Organizational Review and Salary and Classification Analysis ($44,000)
MEETING DATE: December 20, 2000
PREPARED BY: Electric Utility Director
RECOMMENDED ACTION: That the City Council adopt the attached resolution authorizing the
City Manager to enter into a personal services contract with Johnson
and Associates for the organizational review and salary and
classification analysis of the Electric Utility Department ($44,000 including $6,500 salary study).
BACKGROUND INFORMATION: Lodi Electric Utility has 54 employees (47 full-time including the
Director, 7 mid -management, and 7 temporary). The Utility serves
20,000 plus residential and 3,000 commercial industrial customers.
Lodi's peak electrical demand in 2000 was 126 megawatts. Lodi Electric Utility obtains its electricity for
resale from the Western Area Power Administration (Western), the Northern California Power Agency
(NCPA), and the electric market. As a member of NCPA, Lodi participates and receives the generation
output of several NCPA projects including geothermal, hydroelectric, and combustion turbine power plants.
The California electric industry underwent significant changes that started in March of 1998 to accomplish
deregulation. These changes have impacted the Department's operation creating new challenges and
business opportunities with our customers. Initial organizational changes were made to address the
evolving industry on an individual case basis. However, the Lodi Electric organization, as it stands, is a
product of the old utility monopolistic business model. To insure survival in this new deregulated
competitive environment, we must:
• Examine the organization structure to ensure that Lodi Electric is structured in the most effective
and efficient manner;
• Examine the job specifications to ensure that the necessary experience, skill sets and job duties
meet the organization's model and structure;
• Establish the appropriate bench marks to facilitate compensation comparisons with the market
place; and
• Provide a functional and competitive review of department needs including allocation of job
functions and duties, staffing and resource allocation
This proposed review would be the first department -wide organizational review in more than 20 years.
APPROVED:
Dixon Flynn - City Manager
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' CITY OF LODI COUNCIL COMMUNICATION
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Johnson & Associates are being recommended due to their broad range of experience working with
electric utilities and municipalities. Most recently, they have worked with Emerald People's Utility District,
Oregon and Roseville Electric, California among others.
FUNDING: Electric Rate Stabilization Reserve 162
Funding Approval: +
Vicky McAthi ,Finance Director U�t
Alan N. Vallow
Electric Utility Director
PREPARED BY: Mel Grandi, Manager Electric Services
ANVIMG/Ist
C: City Attorney
APPROVED:
H. Dixon Flynn - City Manager
RESOLUTION NO. 2000-228
A RESOLUTION OF THE LODI CITY COUNCIL AUTHORIZING
THE CITY MANAGER TO EXECUTE A PERSONAL SERVICES
CONTRACT WITH JOHNSON AND ASSOCIATES FOR THE
ORGANIZATIONAL REVIEW AND SALARY AND CLASSIFICATION
ANALYSIS OF THE ELECTRIC UTILITY DEPARTMENT
NOW, THEREFORE, BE IT RESOLVED, that the Lodi City Council does hereby
authorize the City Manager to execute a personal services contract with Johnson and
Associates for the organizational review and salary and classification analysis of the Electric
Utility Department in an amount not to exceed $44,000.00 including S6,500.00 salary study.
Dated: December 20, 2000
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I hereby certify that Resolution No. 2000-228 was passed and adopted by the Lodi
City Council in a regular meeting held December 20, 2000 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. BLACKSTON
City Clerk
2000-228