1994 MIN JUNE 21 - Laserfiche WebLink

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Director Hutton pointed out that OMI is a subsidiary of CH2M Hill comprised of stockholders and OMI has to pay a percentage in profits. Mr. David Thornburg replied that OMI and CH2M Hill are employee -owned. Regarding LEMNA, Director Hutton stated that it was under a pilot program at this time and the City will have to budget one more year for the conventional process. Above motion carried upon unanimous vote. City Manager agreed to provide an accounting on the utilities billing and where the money is going, as requested by Councilmember Bennett. Recess: At 8:10 P. M., Mayor Gonzales declared a brief recess. At 8:26 P. M., meeting reconvenes with the Mayor and Council Members present at the dais as heretofore. ELECTRIC UTILITY DIRECTOR'S REPORTS AND RECOMMENDATIONS: Customer Service Policy/Rate Change Electric Utility Director Drews expressed appreciation for the recognition, by the Mayor and City Council, upon his retirement. Director Drews stated that the Electric Department for the past year has worked with the Utilities Commission and have kept Council apprised of their efforts in developing administrative changes to the Customer Service Policy, including the proposed rate changes, to become effective July 1, 1994. He indicated that a number of public hearings were held and the proposed changes were reviewed. He acknowledged that these meetings were attended by some Council Members and some Utilities Commission Members. Director Drews said there were three phases used in developing the revised method of service for the next five years. Service was evaluated in developing the classes of customers and what it cost to provide service to these customers. He described the Power Cost Adjustment formula; the main -breaker position, Policy No. 4; third party notification, Policy No. 17; the establishment of a $5 charge for delivery of a 48-hour termination notice; and, the swimming pool pump off-peak credit program proposed for termination. The Utilities Commission suggested a low income assistance rate. Director Drews pointed out that competitor SCE gives 15% low income assistance discount and even then, the City's customers pay a much lower rate. Staff did not recommend the low income assistance 10 JUN 21 ldl�94