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Home My WebLink About1998 04 01 CC MIN SS1998 04 01 CC MIN SS@˜UMIN SS APR 1 1998[Þ›[H-:8 REGULAR MEETING OF THE CITY COUNCIL OF THE CITY OF BALDWIN PARK, CITY HALL, 14403 EAST PACIFIC AVENUE, WEDNESDAY, APRIL 1,1998 The City Council met in a study session in the Council Chamber at 6:00 p.m. ROLL CALL PRESENT: COUNCIL MEMBERS LOZANO, MUSE, PACHECO, VAN CLEAVE, AND MAYOR LOWES ALSO PRESENT: City Attorney Olivas, Interim City Manager Mousavi, Acting Chief of Police Kies, Interim Director of Finance Holmes, Dir. of Community Development Cervantes, Dir. of Rec/Community Services Nunez, and City Clerk Gair 00- ORAL COMMUNICATIONS Mayor Lowes declared Oral Communications open and invited those wishing to speak to come forward. There were none. Mayor Lowes declared Oral Communications closed. 00- TOPIC OF DISCUSSION Presentation by Edison Rate Changes & Deregulation Impact Jerry Silva of Southern California Edison gave a report and distributed a pamphlet on Electricity Deregulation, the Financial Impact to Municipal Governments, Utility User Taxes, and Franchise Fees. He gave a brief overview of: The Franchise Summary Information * 1937 Franchise Act * Constitutional Franchise * Broughton Act Franchises Deregulated Environment: Franchise Fees * Franchise Agreement terms not impacted * Negative Impact on Franchise Fees * Electricity Surcharge to Third Parties BIB] 37175-U01 MIN-U02 SS-U02 APR-U02 1-U02 1998-U02 LG1-U03 LI1-U03 FO3433-U03 FO3571-U03 FO3626-U03 DO4234-U03 C4-U03 MINUTES1-U03 10/11/2001-U04 ADMIN-U04 MIN-U05 SS-U05 APR-U05 1-U05 1998-U05 BIB] 37263-U01 1998-U02 04-U02 01-U02 CC-U02 MIN-U02 SS-U02 LG1-U03 LI1-U03 FO3433-U03 FO3571-U03 DO4234-U03 C4-U03 MINUTES1-U03 10/11/2001-U04 ADMIN-U04 CITY-U05 COUNCIL-U05 MINUTES-U05 1998 04 01 CC MIN SS@˜UMIN SS APR 1 1998[Þ›[H-:8REGULAR MEETING OF THE CITY COUNCIL PAGE 2 STUDY SESSION OF THE CITY OF BALDWIN PARK APRIL 1, 1998 Chapter 2.5 of Public Utilities Code * The Surcharge" * SB 278 1993 * Senate Bill 703 Richard Rainey) Became Law September 24, 1997 The Surcharge Formula * Loss of Utility Tax/Erosion of Municipal Revenues * 8%- 10% reduction in Franchise Fees and same % decrease in Utility User Taxes Principles of Utility User Taxes U UT) Administration * Ensure Clarity * Ensure Equitable Treatment * Assist local governments with transition Customer Billing * Customer billing options Utility User Taxes UUT) Process Flow Chart * UUT Revenues & Issues * Additional administrative costs * City will be responsible for remitting the Utility Users Tax not SCE * Growth in the Edison Service Providers ESP) Over 300 will operate in California * SCE will provide the cities following the State Law and CPUC guidelines With Customer non-confidential" information; Total Residential Account load information; and release of confidential information with written permission Actions on Utility User Taxes * Letter Sent to 98 Cities who impose UUT * SCE holding workshops * City of San Jose Ordinance sent to all ESP City Council commented on the March 31st start date and the publishing of the benchmark price in the Tribune. They expressed their concern as to what the City should look at when approached by providers. Mr. Silva stated that 2.4 cents is a competitive price, but be sure what the price is on and what you are going to go into. Re encouraged the Council to include SCE in the process of the ESPs. He informed them that there will be a wide choice in the new administrative costs and you will have to consider your choices and options. The City should consider what is the lowest price and when is that price effective peak or off peak). Full competition will occur in 2002. BIB] 37175-U01 MIN-U02 SS-U02 APR-U02 1-U02 1998-U02 LG1-U03 LI1-U03 FO3433-U03 FO3571-U03 FO3626-U03 DO4234-U03 C4-U03 MINUTES1-U03 10/11/2001-U04 ADMIN-U04 MIN-U05 SS-U05 APR-U05 1-U05 1998-U05 BIB] 37263-U01 1998-U02 04-U02 01-U02 CC-U02 MIN-U02 SS-U02 LG1-U03 LI1-U03 FO3433-U03 FO3571-U03 DO4234-U03 C4-U03 MINUTES1-U03 10/11/2001-U04 ADMIN-U04 CITY-U05 COUNCIL-U05 MINUTES-U05 1998 04 01 CC MIN SS@˜UMIN SS APR 1 1998[Þ›[H-:8REGULAR MEETING OF THE CITY COUNCIL PAGE 3 STUDY SESSION OF THE CITY OF BALDWIN PARK APRIL 1, 1998 Council inquired about the transition period and it depending on what a company is offering as whether there is a savings. They also asked about the residents being serviced by many different companies right next door to each other, the individuals choosing on their own, and about the Council having to make the choice of service for the City. Mr. Silva explained that if the Council does nothing, nothing will change. In four years the industry will be totally competitive and at that time Edison will be doing the wiring and street upkeep. He also explained that the Franchise Fees will stay the same for the city, but the city's actual receipts will be 8% less and the administrative costs will increase. In response to the City Manager he said that SCE will notify the City when residents change to other companies. Re did not know at this time how often. Council commented on how complicated that this seems and that the City needs to do all that they can to educate the residents. They felt that we should track the opinions of League of California Cites and other cities ordinances, because there was a real concern to have the citizens know about this and it will need to be figured out and studied thoroughly. Mr. Silva informed the Council that only 5% out 5 million customers have switched from SCE. Also the Public Utilities Commission will send out unbiased representatives to talk to groups and they have a fine program for town hall meetings. The PUC Web Page will give the latest information to the people who want to inquire. Council expressed concern about how the City will know if companies are remitting the correct amount of Utility Tax to the City. They also suggested that the possible decrease in the $249,000 that SCE has paid in Franchise Fees might need to be considered as the budget is prepared. 00- Mayor Lowes declared the meeting adjourned at 6:45 p.m. There were no objections. LINDA L. GAIR, CITY CLERK BIB] 37175-U01 MIN-U02 SS-U02 APR-U02 1-U02 1998-U02 LG1-U03 LI1-U03 FO3433-U03 FO3571-U03 FO3626-U03 DO4234-U03 C4-U03 MINUTES1-U03 10/11/2001-U04 ADMIN-U04 MIN-U05 SS-U05 APR-U05 1-U05 1998-U05 BIB] 37263-U01 1998-U02 04-U02 01-U02 CC-U02 MIN-U02 SS-U02 LG1-U03 LI1-U03 FO3433-U03 FO3571-U03 DO4234-U03 C4-U03 MINUTES1-U03 10/11/2001-U04 ADMIN-U04 CITY-U05 COUNCIL-U05 MINUTES-U05